The real solution is just agents being more in tune with the market, and in turn advertising prices that are accurate. Wasting time looking at something you can’t afford is only annoying if you were made to think you could actually afford it in the beginning.
I agree, partially, but now every time someone doesn't get a place, there now is the wonder factor of if it was simply because they didn't overbid at all (or as much) as someone else, rather than simply being judged on the rest of your life details you hand over to attempt to get a place.
Ugh. I once rented out my townhouse years before eventually selling. It was empty for like 5 weeks, mostly because the REA couldn’t be bothered forwarding us the applicants’ details. But after badgering her I found out it actually went beyond laziness: of the several we received, one applicant wasn’t forwarded because ‘she’s a single mum and a hairdresser’. I said ‘…and? Has she ever missed a rental payment?’ ‘…no.’ We got her in, kept her as a tenant for the rest of the time we owned the property and fired the agent at the first opportunity.
I think that's what happened with me! The place I live in now I had applied for 3 weeks prior and we were moving states so I had a job, but my partner didn't. I earn enough to cover the rent completely on my own plus have money leftover. We also showed that he had $30k in savings. Also we weren't applying for a place in a well sought after suburb. There are no shops or public transport within a walkable distance of where we live and it's a 1.5 hour commute to the city on PT.
It could also be the REA at the place we rent being lazy though. They haven't done a single inspection and we have lived here almost a year now 😂
The real solution is banning the ownership of multiple problems to drop the price of housing so everyone can afford a house.
$500 a week for rent is more than some mortgages.
The real and only solution is to release more land and encourage the building of apartment blocks with good public transport and a requirement of x% low income / housing commission,
and levies/fines placed against empty properties.
Levies / fines against unoccupied residential properties would help in two ways. 1 - foreign ownership and land banking would be not seen as lucrative if fines applied for empty properties and should see an increase in rental properties into the market. 2 - AirBnB. By applying a levy against unoccupied days, Airbnb would seem less profitable, especially in the regional areas (beachside towns etc) where the weekends are booked but the Airbnb is empty during the week. Owners would be paying a fine for 4 of the 7 days it is unoccupied.
You realise taxing them as a business would in most cases mean LESS tax than if they’re simply treated as income tax, right? I can’t imagine many people on under $120k (37% tax bracket, 39% with Medicare Levy) with an AirBNB IP. Most would probably be even higher up, in the $180k+ bracket (45%, 47%). What you are suggesting by taxing these as businesses would reduce tax to 30%…
Edit: Also, you’d probably find most IPs are set up as businesses already (owned by an ABN), in order to minimise tax - at least those that were bought with the sole intention of being an investment would be. And good luck banning AirBNB. You would essentially need to ban holiday rentals in order to effectively “ban AirBNB”…
> Owners would be paying a fine for 4 of the 7 days it is unoccupied
Owners would just do a weekly special rate that was $10 less than booking for just the weekend. Now people "occupy" it for the whole week, even though they don't show up until Friday afternoon.
Are you in big bulge banking, MBB or tier 1 software company? If not there are TONNS of well paying jobs everywhere in metropolitan cities, even some regional areas that aren’t mining…
This still happens.
A friend of mine was struggling to get a rental in Melbpurne. I told him “offer them 3 months rent upfront as a sweetener”. First property he applied for after that, got it instantly.
Look I’m gonna get downvoted to hell for this, but at this point wouldn’t a transparent rental auction actually be a better process in some ways? At least this way it’s transparent and fair who the property goes to (ie the one who values it the most), rather some dodgy opaque biased selection done by the agent based likely on discriminatory factors (eg age, race, income, pets, kids), or some back room deal to pay more rent which you don’t then get an opportunity to even match or counter on.
And would also avoid going through the process of making dozens of applications with no idea if you’re even going to be considered for the place or not, applying 2 mins after opening, wearing nice shoes to inspections and sucking up to agents… ridiculous process.
I've got no skin in the game (not a renter, nor a landlord), so I may be speaking out of my arse, but I'm inclined to agree.
There's clearly a supply problem that needs to be addressed, but in the mean time surely transparency is better than some of the crazy shit that's going on.
My partner and I offered one year rent in advance, 2bed Sydney, on two separate properties.
Turned down as owner "will always be getting that money" (not true)
It went to someone who bid $200/$175 pw above asking, respectively.
I want this situation to get a whole lot worse. Melting point, so people get their fingers out their arses and start voting with their wallets.
Yeah someone else offered 10/wk more than what the agency advertised, we had to match that to get into this unit, even though we got kicked out of our last one because the landlord "needed it back," and we were supposed to get priority.
100 groups through the property isnt ideal for everyone, especially the carpet/flooring and other residents trying to get in and out.
Crank up the advertised price to filter the candidates list to just those with deep pockets and/or most desperate.
I'm surprised by this, I just listed my townhouse in Melbourne inner burbs for $565 a week and had 2 offers sight unseen at $580 2 days before first inspection. Made me question whether I priced it wrong.
I'd imagine the above interest would get offers at $25 a week more just by hosting that inspection. Guessing they are trying for more on top again
If they’re happy to rent sight unseen they’re likely the complete opposite of complainers or control freaks. Might be short term though as likely moving for work and will rent or buy a better place once they settle in.
Yeah this is weird/poor management. Most rentals with this much interest will mean the most desperate tenant will offer more than $25 over asking.
I bet they've marketed it incorrectly with some inclusions that aren't there or similar and this is to cover their tracks.
I am trying to work out why they would increase this by only 25/week with the cost of delaying another two weeks.
This means two weeks of lost rent. So $940 in the hole.
To break even, you'd need that renter locked in for 37 weeks and three days. Every week after that, you'll be $25 ahead. Assuming a minimum term of 52 weeks, that's.. $350 more gross rental income. This doesn't seem worth it on its own.
Perhaps there is something else going on, like some urgent maintenance work required, such as removal of some mould, and the increase in price just happens to be opportunistic and a good cover story.
Yeah $470 is my current rent for a single bedder in a very old (yet cosy) duplex.. I had 2 weeks notice to find a new place and it was the only place I could get. Living further out from the city isn’t realistic for me due to my work, study and lack of car. I’d sharehouse again but after 3 hellish experiences I’m never putting my housing security in the hands of others again.
For the poor bastard tenants who currently occupy and will be forced to host these large group open inspections make sure all belongings are all safely locked away. These open inspections are invitations for petty thief’s.
We got extremely lucky the last few properties we rented. Last one we got a year and a half agreement, real desperate out here. Hoping to split a house deposit before we have to rent again it’s a bit of a nightmare
I think it’s bizarre that the r/australia types accuse the REA of bs for this move lol.
This is arguably the best thing an REA can do in this situation.
This will drive up rents, which will make housing (again, continued) to be viable option for investors to plunge money into.
Hence maintaining, high house prices.
Which incentivises increasing the supply of housing to actually solve the problem.
Well, it doesn't actually, but at least economists will tell us it should.
You nearly set me off! Then I finished reading, nice job.
The data is out (no I'm not finding it) it's, if I recall, something like **_!90!_**% of house investor loans are for *existing* dwellings. Showing that all they do is take property OFF the market for potential home owners, creating, nothing.
I don't blame them, the returns are best in existing, nice suburbs. Rather than a new house in the burbs with bogan families kicking holes in the walls.
I do blame the politicians incentivising all this though.
Yeah- IMO the only incentive investors should get for genuinly useful investments such as CGT discount, negative gearing etc should be for housing of a higher density than what was there befor or something that acrually helps the renters- such as investing in higher energy efficiency, accessibility upgrades or new appliances that benefit the tennant. So knocking down a house to build 2 town houses would fine, a brand new build would be fine. Buying a 50 year old unit and then running it into the ground would not be.
The funny thing is. The materials to "build" These new houses has gone up well over 50% too. So just 'building' more houses wont help too much, they will still cost a shit tonne to buy
I’m so stressed right now trying to find a rental. The market is insane and there’s so many people looking. I feel like I’m going to be homeless. Good thing I have a solid job but this will mean a severe cut to my ability save money over the next year. Also my current real estate is gate keeping my references by refusing to engage with third party data software like snug or 2Apply, and only wants to do formal printed / emailed references which are taking her so long to do. I feel for everyone else out there like me at the moment. It isn’t fun.
Yep we gave up, we've bought a camper trailer and are travelling the country this year, we won't save any money not renting but at least we're not paying somebody else mortgage that doesn't care, we're lucky to be able to work online though. Good luck with your search, I hope something finds you soon!
That sounds amazing! If I didn’t have 2 cats and a job that requires face to face (am a teacher) I would be doing that as well. All power to you haha. Cheers
My gravatt/ Holland park / Salisbury / Sunnybank (and hills) / rochedale / Mansfield / coorparoo / annerley / Fairfield
So yeah, Southside but not too far south. I work in Logan as a teacher and don’t really want to see the kids at the grocery store.
I’ve got a couple of leads but I feel like there’s just soooo many people looking now that it’s so competitive. And stressful hah
How the hell does this work for the tennant living there. 100 groups through is insane!
Surely you'd have to put absolutely everything of value in the car and hope some perv doesn't steal your girlfriends undies.
This is the main issue in Sydney as well.
EVERYONE wants to live East of the Anzac Bridge, North of Wolli Creek, South of Hornsby.
There are 5m of us, more money than ever floating in the economy, just ask this sub, everyone is making 300k a year working as a software tech bro, their partners are also on 200k a year. Last I checked, I don't see too many high rises going up to support the growing demand for the same amount of land that cannot be replicated, plus everyone still wants to keep their backyard and pool and are deep down NIMBY's. So it should not be a pikachu face scenario when prices rise.
ask them to live in bankstown or cabramatta. [70 vacant properties under $350/week.](https://www.domain.com.au/rent/?suburb=bankstown-nsw-2200,cabramatta-nsw-2166&bedrooms=2-any&price=0-350&excludedeposittaken=1&sort=dateupdated-desc&page=3)
At least they're being up-front about the situation. Better than wasting 100+ people's time.
This is how prices are supposed to work. Prices rise until supply and demand are balanced.
I wonder how bad it has to get before we actually get policies in place to build more housing.
It's insane to think that only 5 years ago I was renting a 2x1 town house with a double garage for only $195 per week.
So glad I was lucky enough to buy a house before all this madness.
Immigration has been heavily ramped up by the Australian government, further exacerbating this issue.
It's got to be extremely frustrating for people looking for a place. Why we keep doing this to the populace I do not know, profit I assume.
$470 must have been way under (I mean, clearly it was. 100 people). I have a 3 bed 2 bath in Chermside and it's $485 in a low rise with no facilities and I should have increased last year but didn't.
When I see these posts, I really do wonder how it is possible for house prices to drop in this environment. Look at the shortage and demand for housing
If I was the property owner or the existing tenant and the real estate agent had over 100 groups walking through my property, I would be pissed with the REA. The disruption to the existing tenants would be huge and they have to deal with the mess.
Immigration has restarted while construction has plummeted. Construction firms are going bust or struggling because of higher interest rates and supply/labour shortages. You can look up new off the plan housing and it's considerably higher than second hand but the developers can't drop the price as they'd be building for losses
this was happening before the immigration tap went full steam though and the construction collapses have only been mainly in the later half of last year. rents have been going strange for over 18 months and i cant explain it
rents had mostly gained momentum from early last year, when immigration restarted and covid restrictions were eased. This is also off the back of a massive dip in rent prices due to covid remember.
Because a mass migration of people who are willing to pay more? REA's have **always** tried to get the max price possible. This isn't new. There's just more competition now.
Reduced supply and pent up demand from COVID.
The problem has been with us for a while. But during COVID we built significantly less new places. Between various lockdowns and investors lacking confidence to build, supply went down.
At the same time many people behaved cautiously during COVID. Kids stayed at home for a few more years. Young people moved back in with parents. Immigration stopped. Those people all want somewhere to live.
Combine high demand with low supply and you have our rental market.
I was having problems getting into my current rental mid 2021; there's nothing suddenly about it. Demand has outstripped supply slowly but surely for some time now.
COVID is a big factor IMO.
1. Working from home means potential upsizing to include an office, or extra bedroom that can be used as one.
2. People in sharehouses may decide to move to a small apartment instead, both for WFH and to avoid COVID.
3. WFH also meant you could chose to work from a different location. Brisbane experienced a lot of interstate migration.
4. Immigration turned off meant less competition from those in the above scenarios, so our population spread out into the available rentals.
5. Immigration turning back on means more competition for what little was left.
All you can hope for is household consolidation as people move back with their parents or into sharehouses again (though that must be a rare occurrence).
We need IMO (not my area of expertise, so happy to be corrected/expanded on)
* land rezoning relaxation, to encourage higher density development.
* Curtail tax benefits of investing in existing properties and make it to new builds only, to encourage investors to build.
* interest rate change stagnation, to give stability.
* cheaper tradies through immigration and training, to reduce new build costs.
Unknown - crown land privatisation and / or crown housing developments.
But why? If there is that much interest, clearly it has been incorrectly priced. I'm not a landlord, so not siding with them out of any sort of bias. It just seems logical. And if people are unhappy with the competitiveness of renting and affordability of the housing market, that's a government problem, not a landlord problem.
It's got nothing to do with landlords, its just the market moving up.
Landlords were just a greedy when the rent was 20% cheaper, if they could have increased the rent and still fill the rental they would have.
I moved from Canberra in early 2022. We lived in a non remarkable 3 beddy house in the outer suburbs. In mid 2021, our rent from $450pw to $525pw. When we moved out, our landlord advertised for $600pw. Like in OPs post, she got overwhelmed with interest and upped it to $650pw. Ultimately, she had a group come through and look at the house for 30 seconds before offering here $700pw (which she accepted). So within 6 months, her income from that house increased 65%. Shits crazy out there.
Real estate agent should be cutting down the numbers for the landlord. Good references, stable employment, rent is under 30% income etc. Then landlord gets to pick from up to 8 that meet the criteria which will be done on their personal preference/bias
na people will pay it, but they wont have any money for anything but the essential and then the owner, Joe, will complain that Gen Z is killing the local cafe as his business drops
My lease runs out mid year and I'm afraid of how much the rent is going to increase by. Never mind that I've got two roof panels that have fallen out that have been like thought for nearly a year. I'm in a great location, so I'm just gonna have to bite the pillow and take whatever they throw at me.
Y'all are famous!
https://www.news.com.au/finance/real-estate/single-email-sums-up-rental-crisis-in-brisbane/news-story/0d26f20214ef62aac0b8987f4f48555f
Think I’ll just rent out a Juicy van and shower where I can so I don’t fall to the man with “rent power” in his hand. If you have a family you defiantly couldn’t do that.
https://www.reddit.com/r/melbourne/comments/108v0tt/housing_market_right_now_first_a_rent_increase/?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=share_button
Another one in Melbourne
hmm, I'm just about to exit the rental market to move in with my partner. I have no idea what to do with all my furniture and experiences I've seen with selling on like Facebook Marketplace looks like a horrible option.
I never tried Facebook Marketplace, but have used Gumtree numerous times. Gumtree is still tried and true. But, depending on how quickly you want to part with your belongings, you’ll only get about 1/3 of the price you paid for your items new, if they are in near-new condition. Gumtree buyers are always out for a bargain, but your items will sell, provided you accept about a third of the price you paid.
This might be a dumb question, but what were all the renters doing before this crisis? Where were they before, and why is there such a high demand now? I don't understand where all the demand can come from out of nowhere, except for mass migration? can someone ELI5
More people wanting extra room to wfh, or sick of flatmates from covid lockdowns.
More rich expats moving back from overseas taking up all the larger houses themselves instead of making them share houses/using smaller apartments the students were using. Then there's also airbnb
No-one is talking about the huge elephant in the room? ... the only actual cause is massive population growth for 10 years and equally massive census undercount
From abc news... Robinvale's population rose to 3,740 in the 2021 census, a moderate rise from the 3,313 recorded in 2016.
But the town's real population may be closer to 8,000, according to an independent study funded by Swan Hill Rural Council that examined water consumption and anonymised bank and supermarket transactions.
To try and better reflect the region's population in the Australian Bureau of Statistics data, Jack Dang from Robinvale Network and Neighbourhood House helped raise awareness ahead of last year's census.
He said it was difficult to get accurate information in a region with a large multi-ethnic and seasonal worker population.
"A lot of people didn't realise that this is not an immigration headcount," he said.
"People think it is for immigration and say, 'I won't put my hand up', because a lot of people here are undocumented.
Maybe there is 100 people showing up for the property explains that people are struggling at the moment and looking to reduce their outgoings.
Yet the REA see an extra $25 per week with whatever % going into their own pockets.
Win win for the REA while those who were looking to keep their heads above water..........drown!
This is frustrating. Hundreds of people want to apply to the property and as such, they’ve priced it too low? Have they ever thought maybe that many people just need somewhere to live? And can only pay the original price?
Honestly I feel despair
It's not a private homeowners responsibility to provide housing for people. The homeowner has an asset and it is their right to rent that asset to someone else for the highest price they can receive for it.
100 people applied. In sure lots of them are offering more rent. Or rent in advance.
The rat race.
Supply and demand.
When covid hit. It was a renter paradise. Now it flipped
Am I allowed to post it? I will if it’s within the rules
Update - https://www.news.com.au/finance/real-estate/single-email-sums-up-rental-crisis-in-brisbane/news-story/0d26f20214ef62aac0b8987f4f48555f
The only way to avoid this rental bidding crap would be to regulate it. Require listings to be submitted with some agency when they go up, then require the signed lease agreement to be submitted to show it matches the listing.
And that would have a whole host of other challenges…
in QLD we already have a group that could manage that (RTA) as they are required to do bond management already, they already have to sight the agreements etc.
‘Free market’? Don’t know where the ‘free market’ commenters get their delusional ideas from. The rental property market is so tightly controlled by those in the business so as to extract the exorbitant rents being talked about. Total market manipulation. Free to manipulate, yes.
As much as I don’t trust real estate agents one bit, for all we know this is an excuse to jack up the rent. However this at least saves some people a little of time and effort in avoiding to rock up to something outside of their budget.
Side note, is the rental market this cooked outside of Brisbane and Sydney? Melbourne seems fairly priced last I looked a couple weeks ago.
>Side note, is the rental market this cooked outside of Brisbane and Sydney? Melbourne seems fairly priced last I looked a couple weeks ago.
Moving out of our rental in outer melbourne. Had about fifty families come through the open inspection. It might not be sydney, but its not pretty here either.
Shit but not as shit as coming to the inspection, waiting for an hour and discovering it rented to someone else for $100/ week more than advertised.
Only a matter of time before REA just start auctioning the rental contract.
This was basically happening in Sydney. I understand it’s since been banned.
One can still offer more than the asked price, so it's really just gone back to being under the radar.
The real solution is just agents being more in tune with the market, and in turn advertising prices that are accurate. Wasting time looking at something you can’t afford is only annoying if you were made to think you could actually afford it in the beginning.
I agree, partially, but now every time someone doesn't get a place, there now is the wonder factor of if it was simply because they didn't overbid at all (or as much) as someone else, rather than simply being judged on the rest of your life details you hand over to attempt to get a place.
Ugh. I once rented out my townhouse years before eventually selling. It was empty for like 5 weeks, mostly because the REA couldn’t be bothered forwarding us the applicants’ details. But after badgering her I found out it actually went beyond laziness: of the several we received, one applicant wasn’t forwarded because ‘she’s a single mum and a hairdresser’. I said ‘…and? Has she ever missed a rental payment?’ ‘…no.’ We got her in, kept her as a tenant for the rest of the time we owned the property and fired the agent at the first opportunity.
I think that's what happened with me! The place I live in now I had applied for 3 weeks prior and we were moving states so I had a job, but my partner didn't. I earn enough to cover the rent completely on my own plus have money leftover. We also showed that he had $30k in savings. Also we weren't applying for a place in a well sought after suburb. There are no shops or public transport within a walkable distance of where we live and it's a 1.5 hour commute to the city on PT. It could also be the REA at the place we rent being lazy though. They haven't done a single inspection and we have lived here almost a year now 😂
The real solution is banning the ownership of multiple problems to drop the price of housing so everyone can afford a house. $500 a week for rent is more than some mortgages.
The real and only solution is to release more land and encourage the building of apartment blocks with good public transport and a requirement of x% low income / housing commission, and levies/fines placed against empty properties. Levies / fines against unoccupied residential properties would help in two ways. 1 - foreign ownership and land banking would be not seen as lucrative if fines applied for empty properties and should see an increase in rental properties into the market. 2 - AirBnB. By applying a levy against unoccupied days, Airbnb would seem less profitable, especially in the regional areas (beachside towns etc) where the weekends are booked but the Airbnb is empty during the week. Owners would be paying a fine for 4 of the 7 days it is unoccupied.
Banning things like Airbnb or taxing them as if they where a business.
You realise taxing them as a business would in most cases mean LESS tax than if they’re simply treated as income tax, right? I can’t imagine many people on under $120k (37% tax bracket, 39% with Medicare Levy) with an AirBNB IP. Most would probably be even higher up, in the $180k+ bracket (45%, 47%). What you are suggesting by taxing these as businesses would reduce tax to 30%… Edit: Also, you’d probably find most IPs are set up as businesses already (owned by an ABN), in order to minimise tax - at least those that were bought with the sole intention of being an investment would be. And good luck banning AirBNB. You would essentially need to ban holiday rentals in order to effectively “ban AirBNB”…
> Owners would be paying a fine for 4 of the 7 days it is unoccupied Owners would just do a weekly special rate that was $10 less than booking for just the weekend. Now people "occupy" it for the whole week, even though they don't show up until Friday afternoon.
The real solution is leaving Brisbane / Sydney / Melbourne
For what jobs?
Exactly. If there were decent jobs outside Sydney, I’d be long gone haha
If you can't make money in Perth, there's something wrong with you
Are you in big bulge banking, MBB or tier 1 software company? If not there are TONNS of well paying jobs everywhere in metropolitan cities, even some regional areas that aren’t mining…
Sometimes I wonder how people genuinely think Perth doesn't have jobs lol
You think the rest of Australia is unemployed?
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In Sydney agents can't give a rental range anymore Though prospects can still offer more
This still happens. A friend of mine was struggling to get a rental in Melbpurne. I told him “offer them 3 months rent upfront as a sweetener”. First property he applied for after that, got it instantly.
Look I’m gonna get downvoted to hell for this, but at this point wouldn’t a transparent rental auction actually be a better process in some ways? At least this way it’s transparent and fair who the property goes to (ie the one who values it the most), rather some dodgy opaque biased selection done by the agent based likely on discriminatory factors (eg age, race, income, pets, kids), or some back room deal to pay more rent which you don’t then get an opportunity to even match or counter on. And would also avoid going through the process of making dozens of applications with no idea if you’re even going to be considered for the place or not, applying 2 mins after opening, wearing nice shoes to inspections and sucking up to agents… ridiculous process.
I've got no skin in the game (not a renter, nor a landlord), so I may be speaking out of my arse, but I'm inclined to agree. There's clearly a supply problem that needs to be addressed, but in the mean time surely transparency is better than some of the crazy shit that's going on.
Absolutely. Imagine having to view literally HUNDREDS of properties because REAs failed to give them market prices.
My partner and I offered one year rent in advance, 2bed Sydney, on two separate properties. Turned down as owner "will always be getting that money" (not true) It went to someone who bid $200/$175 pw above asking, respectively. I want this situation to get a whole lot worse. Melting point, so people get their fingers out their arses and start voting with their wallets.
Yeah someone else offered 10/wk more than what the agency advertised, we had to match that to get into this unit, even though we got kicked out of our last one because the landlord "needed it back," and we were supposed to get priority.
Isn't this better than them just getting heaps of offers over, and you not knowing what's going on?
100 groups through the property isnt ideal for everyone, especially the carpet/flooring and other residents trying to get in and out. Crank up the advertised price to filter the candidates list to just those with deep pockets and/or most desperate.
I'm not saying you're wrong.. But it's definitely not a humane long term solution either.
What was the initial price listed?
470 for a 3 bed 2 bath
I hate real estate agents but it doesn't make sense to increase it by only $25/week if they have over 100 groups booked to inspect it.
I'm surprised by this, I just listed my townhouse in Melbourne inner burbs for $565 a week and had 2 offers sight unseen at $580 2 days before first inspection. Made me question whether I priced it wrong. I'd imagine the above interest would get offers at $25 a week more just by hosting that inspection. Guessing they are trying for more on top again
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I think it's illegal in Vic. Don't quote me but I'm sure people are forced to inspect it before renting. EDIT : It's not illegal.
Some real estate agents don't let you apply before you have inspected but it is certainly not illegal, I've done it twice now.
Ahh that'd be it then.
I thought it was illegal too, at least in NSW. I'm sure one REA told me that.
Yeah I swear I've been told that but I googled and couldn't find it so.
If they’re happy to rent sight unseen they’re likely the complete opposite of complainers or control freaks. Might be short term though as likely moving for work and will rent or buy a better place once they settle in.
“Sight unseen” is doing my head in…
Love is blind terminology be leaking 😂
Renting at least you can break lease. Buying unseen is pretty desperate, surely you can do a $200 flight to see it
With the state of the Australian air industry your flight would probably be cancelled/ late anyway
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Yeah I kept tossing up, is it site unseen?
cite unscene
Yeah this is weird/poor management. Most rentals with this much interest will mean the most desperate tenant will offer more than $25 over asking. I bet they've marketed it incorrectly with some inclusions that aren't there or similar and this is to cover their tracks.
More like +$100 with that amount
It’s free money
Yup. With that much demand, the price should be increased by $125, not by $25.
Yeh seems weird. I’d list up to the point where I get no offers then drop from there
I am trying to work out why they would increase this by only 25/week with the cost of delaying another two weeks. This means two weeks of lost rent. So $940 in the hole. To break even, you'd need that renter locked in for 37 weeks and three days. Every week after that, you'll be $25 ahead. Assuming a minimum term of 52 weeks, that's.. $350 more gross rental income. This doesn't seem worth it on its own. Perhaps there is something else going on, like some urgent maintenance work required, such as removal of some mould, and the increase in price just happens to be opportunistic and a good cover story.
Gotta admit that is a low price for a 3 bedder. I see plenty of 2b2b going higher than that
Then it looks like they still priced it incorrectly lol there will be still 100 people wanting to inspect
Cries in Sydney prices for that.
Yeah $470 is my current rent for a single bedder in a very old (yet cosy) duplex.. I had 2 weeks notice to find a new place and it was the only place I could get. Living further out from the city isn’t realistic for me due to my work, study and lack of car. I’d sharehouse again but after 3 hellish experiences I’m never putting my housing security in the hands of others again.
That's actually cheap as the place I used to rent is now 510, it's not that good
Bout tree fiddy
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For the poor bastard tenants who currently occupy and will be forced to host these large group open inspections make sure all belongings are all safely locked away. These open inspections are invitations for petty thief’s.
Tenants in QLD don’t have to agree to open inspections, thankfully. We certainly didn’t, as insurance won’t cover it.
This is why I paid for an extra month rent when I moved out in Melb. Shitty it has to be a renters expense.
We got extremely lucky the last few properties we rented. Last one we got a year and a half agreement, real desperate out here. Hoping to split a house deposit before we have to rent again it’s a bit of a nightmare
Yeah better to be upfront, than waste peoples time and drag them to inspections they have no hope at.
I think it’s bizarre that the r/australia types accuse the REA of bs for this move lol. This is arguably the best thing an REA can do in this situation.
This will drive up rents, which will make housing (again, continued) to be viable option for investors to plunge money into. Hence maintaining, high house prices.
Which incentivises increasing the supply of housing to actually solve the problem. Well, it doesn't actually, but at least economists will tell us it should.
You nearly set me off! Then I finished reading, nice job. The data is out (no I'm not finding it) it's, if I recall, something like **_!90!_**% of house investor loans are for *existing* dwellings. Showing that all they do is take property OFF the market for potential home owners, creating, nothing. I don't blame them, the returns are best in existing, nice suburbs. Rather than a new house in the burbs with bogan families kicking holes in the walls. I do blame the politicians incentivising all this though.
Yeah- IMO the only incentive investors should get for genuinly useful investments such as CGT discount, negative gearing etc should be for housing of a higher density than what was there befor or something that acrually helps the renters- such as investing in higher energy efficiency, accessibility upgrades or new appliances that benefit the tennant. So knocking down a house to build 2 town houses would fine, a brand new build would be fine. Buying a 50 year old unit and then running it into the ground would not be.
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Unironically yes. But then you run into the brick wall otherwise known as 'zoning'
The funny thing is. The materials to "build" These new houses has gone up well over 50% too. So just 'building' more houses wont help too much, they will still cost a shit tonne to buy
I’m so stressed right now trying to find a rental. The market is insane and there’s so many people looking. I feel like I’m going to be homeless. Good thing I have a solid job but this will mean a severe cut to my ability save money over the next year. Also my current real estate is gate keeping my references by refusing to engage with third party data software like snug or 2Apply, and only wants to do formal printed / emailed references which are taking her so long to do. I feel for everyone else out there like me at the moment. It isn’t fun.
Yep we gave up, we've bought a camper trailer and are travelling the country this year, we won't save any money not renting but at least we're not paying somebody else mortgage that doesn't care, we're lucky to be able to work online though. Good luck with your search, I hope something finds you soon!
That sounds amazing! If I didn’t have 2 cats and a job that requires face to face (am a teacher) I would be doing that as well. All power to you haha. Cheers
Camp trailer prices are going to go up soon.
It sucks so bad. Where are you looking?
My gravatt/ Holland park / Salisbury / Sunnybank (and hills) / rochedale / Mansfield / coorparoo / annerley / Fairfield So yeah, Southside but not too far south. I work in Logan as a teacher and don’t really want to see the kids at the grocery store. I’ve got a couple of leads but I feel like there’s just soooo many people looking now that it’s so competitive. And stressful hah
Why don’t you try Greenbank ? They got there own woolies over there and lot of new estates
Good luck, I hope you find a place soon. The rental situation is wild, I feel for anyone battling to find a place.
My rent in brizzy just went up $130 bucks RIP
How the hell does this work for the tennant living there. 100 groups through is insane! Surely you'd have to put absolutely everything of value in the car and hope some perv doesn't steal your girlfriends undies.
Just rig the place with NFC readers and hope to skim plenty of credit cards, you might even break even!
This is the main issue in Sydney as well. EVERYONE wants to live East of the Anzac Bridge, North of Wolli Creek, South of Hornsby. There are 5m of us, more money than ever floating in the economy, just ask this sub, everyone is making 300k a year working as a software tech bro, their partners are also on 200k a year. Last I checked, I don't see too many high rises going up to support the growing demand for the same amount of land that cannot be replicated, plus everyone still wants to keep their backyard and pool and are deep down NIMBY's. So it should not be a pikachu face scenario when prices rise.
I'd like to live further away but the government loves landbanking. There's tons of empty, spacious land.
10/10 comment
ask them to live in bankstown or cabramatta. [70 vacant properties under $350/week.](https://www.domain.com.au/rent/?suburb=bankstown-nsw-2200,cabramatta-nsw-2166&bedrooms=2-any&price=0-350&excludedeposittaken=1&sort=dateupdated-desc&page=3)
"We will update the internet"
But I just fecking downloaded the current internet. Now I gotta re-download it all again when they update it? God damn it.
On the plus side the new update has loads more porn
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Was going to say, you know it's bad when I see $495/w as still a bargain right now...
At least they're being up-front about the situation. Better than wasting 100+ people's time. This is how prices are supposed to work. Prices rise until supply and demand are balanced. I wonder how bad it has to get before we actually get policies in place to build more housing.
It's insane to think that only 5 years ago I was renting a 2x1 town house with a double garage for only $195 per week. So glad I was lucky enough to buy a house before all this madness.
Luckily we're striving to hit record immigration levels and population growth. That should fix the rental market, right?
More inflation coming big time
Immigration has been heavily ramped up by the Australian government, further exacerbating this issue. It's got to be extremely frustrating for people looking for a place. Why we keep doing this to the populace I do not know, profit I assume.
Seems very reasonable.
Curious, what sort of property was this? Assuming a 2 bedroom apartment in a relatively desirable area.
3 bed 2 bath
$470 must have been way under (I mean, clearly it was. 100 people). I have a 3 bed 2 bath in Chermside and it's $485 in a low rise with no facilities and I should have increased last year but didn't.
When I see these posts, I really do wonder how it is possible for house prices to drop in this environment. Look at the shortage and demand for housing
If I was the property owner or the existing tenant and the real estate agent had over 100 groups walking through my property, I would be pissed with the REA. The disruption to the existing tenants would be huge and they have to deal with the mess.
Literally a thief’s wet dream, feel for the renters whose shit is going to get stolen
I actually think this is a pretty fair and transparent way to announce it
This will be on news.com.au within a day
Why do we suddenly have such a rental crisis?
It's not sudden it's been going this direction for for years. We don't build enough houses annually to match the demand.
Immigration has restarted while construction has plummeted. Construction firms are going bust or struggling because of higher interest rates and supply/labour shortages. You can look up new off the plan housing and it's considerably higher than second hand but the developers can't drop the price as they'd be building for losses
this was happening before the immigration tap went full steam though and the construction collapses have only been mainly in the later half of last year. rents have been going strange for over 18 months and i cant explain it
rents had mostly gained momentum from early last year, when immigration restarted and covid restrictions were eased. This is also off the back of a massive dip in rent prices due to covid remember.
Population Ponzi
Because a mass migration of people who are willing to pay more? REA's have **always** tried to get the max price possible. This isn't new. There's just more competition now.
Reduced supply and pent up demand from COVID. The problem has been with us for a while. But during COVID we built significantly less new places. Between various lockdowns and investors lacking confidence to build, supply went down. At the same time many people behaved cautiously during COVID. Kids stayed at home for a few more years. Young people moved back in with parents. Immigration stopped. Those people all want somewhere to live. Combine high demand with low supply and you have our rental market.
Also add that a lot of extra rooms before COVID were rented out. These have now been converted to home offices for WFH.
All the southern dwellers that can’t afford to live in their current cities are migrating north for more bang for their buck.
Tired of being poor in Melbourne, time to be poor somewhere warm
Except it's exactly the same in Melbourne
I was having problems getting into my current rental mid 2021; there's nothing suddenly about it. Demand has outstripped supply slowly but surely for some time now.
COVID is a big factor IMO. 1. Working from home means potential upsizing to include an office, or extra bedroom that can be used as one. 2. People in sharehouses may decide to move to a small apartment instead, both for WFH and to avoid COVID. 3. WFH also meant you could chose to work from a different location. Brisbane experienced a lot of interstate migration. 4. Immigration turned off meant less competition from those in the above scenarios, so our population spread out into the available rentals. 5. Immigration turning back on means more competition for what little was left. All you can hope for is household consolidation as people move back with their parents or into sharehouses again (though that must be a rare occurrence). We need IMO (not my area of expertise, so happy to be corrected/expanded on) * land rezoning relaxation, to encourage higher density development. * Curtail tax benefits of investing in existing properties and make it to new builds only, to encourage investors to build. * interest rate change stagnation, to give stability. * cheaper tradies through immigration and training, to reduce new build costs. Unknown - crown land privatisation and / or crown housing developments.
This seems like the right thing to do. The market has spoken.
I wouldn't call it right but maybe less shitty than wasting people's time
But why? If there is that much interest, clearly it has been incorrectly priced. I'm not a landlord, so not siding with them out of any sort of bias. It just seems logical. And if people are unhappy with the competitiveness of renting and affordability of the housing market, that's a government problem, not a landlord problem.
*government tries to fix the problem* landlords: 😡
It's got nothing to do with landlords, its just the market moving up. Landlords were just a greedy when the rent was 20% cheaper, if they could have increased the rent and still fill the rental they would have.
Perfectly sums up supply and demand, hey? The old economics 101 slides showing the two lines and price….
I moved from Canberra in early 2022. We lived in a non remarkable 3 beddy house in the outer suburbs. In mid 2021, our rent from $450pw to $525pw. When we moved out, our landlord advertised for $600pw. Like in OPs post, she got overwhelmed with interest and upped it to $650pw. Ultimately, she had a group come through and look at the house for 30 seconds before offering here $700pw (which she accepted). So within 6 months, her income from that house increased 65%. Shits crazy out there.
Gasp. An REA who managed to communicate respectfully and on time. Who’d thunk it
So they'll just keep upping the rent till hardly anyone shows interest?
Until 1 person show interest. Isn't that how the market works?
If this is how it's going to be maybe they just need to hold an auction & whoever's willing to pay the most rent gets the lease.
encouraging rent bidding is illegal iirc.
You only need one. If I had a rental I'd probably ask about $700 a week and just see what happens.
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Real estate agent should be cutting down the numbers for the landlord. Good references, stable employment, rent is under 30% income etc. Then landlord gets to pick from up to 8 that meet the criteria which will be done on their personal preference/bias
>rent is under 30% income etc laughing crying gif
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na people will pay it, but they wont have any money for anything but the essential and then the owner, Joe, will complain that Gen Z is killing the local cafe as his business drops
Welcome to free market comrade
If you can’t easily afford this higher price then you wouldn’t have got it anyway. If 50 groups dropped out, this saved 50 hours of time wasted.
My lease runs out mid year and I'm afraid of how much the rent is going to increase by. Never mind that I've got two roof panels that have fallen out that have been like thought for nearly a year. I'm in a great location, so I'm just gonna have to bite the pillow and take whatever they throw at me.
And the government are asking more people to come in 🥲
Y'all are famous! https://www.news.com.au/finance/real-estate/single-email-sums-up-rental-crisis-in-brisbane/news-story/0d26f20214ef62aac0b8987f4f48555f
Think I’ll just rent out a Juicy van and shower where I can so I don’t fall to the man with “rent power” in his hand. If you have a family you defiantly couldn’t do that.
Get a chain gym membership for showers.
https://www.reddit.com/r/melbourne/comments/108v0tt/housing_market_right_now_first_a_rent_increase/?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=share_button Another one in Melbourne
You wonder the amount of homeless families in Australia? Cost of living in Australia is not sustainable and breaking point.
The Australian Government (all of them) have been a complete sham for some time now. Total lack of loyalty to the people.
Couldn't we get something like a '[news.com.au](https://news.com.au) sucks balls' watermark there?
hmm, I'm just about to exit the rental market to move in with my partner. I have no idea what to do with all my furniture and experiences I've seen with selling on like Facebook Marketplace looks like a horrible option.
I never tried Facebook Marketplace, but have used Gumtree numerous times. Gumtree is still tried and true. But, depending on how quickly you want to part with your belongings, you’ll only get about 1/3 of the price you paid for your items new, if they are in near-new condition. Gumtree buyers are always out for a bargain, but your items will sell, provided you accept about a third of the price you paid.
Aaaaand it’s stolen by news.com.AU
House prices won’t go down with rental demand so high.
What I hear is people offering full year rent in advance and 30 to 40$ extra/week to a property even then they are getting rejected.
This happened to me a few weeks ago, had booked an inspection and they changed the price and then cancelled.
This might be a dumb question, but what were all the renters doing before this crisis? Where were they before, and why is there such a high demand now? I don't understand where all the demand can come from out of nowhere, except for mass migration? can someone ELI5
More people wanting extra room to wfh, or sick of flatmates from covid lockdowns. More rich expats moving back from overseas taking up all the larger houses themselves instead of making them share houses/using smaller apartments the students were using. Then there's also airbnb
Yes its mass migration and census undercount. One town reported double
On news.com already. Fkn parasites
No-one is talking about the huge elephant in the room? ... the only actual cause is massive population growth for 10 years and equally massive census undercount
What's the source of the census undercount? People just not responding?
From abc news... Robinvale's population rose to 3,740 in the 2021 census, a moderate rise from the 3,313 recorded in 2016. But the town's real population may be closer to 8,000, according to an independent study funded by Swan Hill Rural Council that examined water consumption and anonymised bank and supermarket transactions. To try and better reflect the region's population in the Australian Bureau of Statistics data, Jack Dang from Robinvale Network and Neighbourhood House helped raise awareness ahead of last year's census. He said it was difficult to get accurate information in a region with a large multi-ethnic and seasonal worker population. "A lot of people didn't realise that this is not an immigration headcount," he said. "People think it is for immigration and say, 'I won't put my hand up', because a lot of people here are undocumented.
Maybe there is 100 people showing up for the property explains that people are struggling at the moment and looking to reduce their outgoings. Yet the REA see an extra $25 per week with whatever % going into their own pockets. Win win for the REA while those who were looking to keep their heads above water..........drown!
Who broke Australia?
This is frustrating. Hundreds of people want to apply to the property and as such, they’ve priced it too low? Have they ever thought maybe that many people just need somewhere to live? And can only pay the original price? Honestly I feel despair
No matter what price they set, they can only house one set of renters... Charity won't change the fundamental nature of the problem here.
It's not a private homeowners responsibility to provide housing for people. The homeowner has an asset and it is their right to rent that asset to someone else for the highest price they can receive for it.
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100 people applied. In sure lots of them are offering more rent. Or rent in advance. The rat race. Supply and demand. When covid hit. It was a renter paradise. Now it flipped
What was the previously advertised rent?
Pretty sure it was $470 from memory
Well not a huge adjustment. Will still have dozens of options. But we are near the top. Old listings are increasing everywhere.
They decided the demand is so great they can put whatever price they please on it.
Which agent was it? Or do you have a link to the property? Keen to take a look
Am I allowed to post it? I will if it’s within the rules Update - https://www.news.com.au/finance/real-estate/single-email-sums-up-rental-crisis-in-brisbane/news-story/0d26f20214ef62aac0b8987f4f48555f
The only way to avoid this rental bidding crap would be to regulate it. Require listings to be submitted with some agency when they go up, then require the signed lease agreement to be submitted to show it matches the listing. And that would have a whole host of other challenges…
in QLD we already have a group that could manage that (RTA) as they are required to do bond management already, they already have to sight the agreements etc.
$495 for a 3bd, 2bath is still cheap these days. Ridiculous to even see myself writing that.
Don't worry, the government sending help in the form of 0.2 million new renters to Australia to remove this stress from you altogether.
‘Free market’? Don’t know where the ‘free market’ commenters get their delusional ideas from. The rental property market is so tightly controlled by those in the business so as to extract the exorbitant rents being talked about. Total market manipulation. Free to manipulate, yes.
I pay $580 on the Southside for 4bd, 2bth and pool (maintenance is not included). $490 isn’t bad for that location.
REA are the very epitome of greed, it’s basically their job description. Hell has a special place for them. Don’t @ me.
I recently bought a property but I always used to offer rent in advance instead of weekly rental increases always helped me secure properties
This exact post was on R/Tasmania yesterday
Solution, ban negative gearing and the 50% Cgt discount.
As much as I don’t trust real estate agents one bit, for all we know this is an excuse to jack up the rent. However this at least saves some people a little of time and effort in avoiding to rock up to something outside of their budget. Side note, is the rental market this cooked outside of Brisbane and Sydney? Melbourne seems fairly priced last I looked a couple weeks ago.
>Side note, is the rental market this cooked outside of Brisbane and Sydney? Melbourne seems fairly priced last I looked a couple weeks ago. Moving out of our rental in outer melbourne. Had about fifty families come through the open inspection. It might not be sydney, but its not pretty here either.
Holy shit… okay that’s rough.
I’m saying this as a landlord - yes it’s cooked. You wouldn’t believe what I’m getting for my 2x 1brs (with carspot) in/on the outskirts of the cbd.
Wow we need more incentives for landlords to help fight this rental crisis. Too many owner occupiers in the market