Why Rental Prices Are Rising So Fast

If you are looking for a property to rent at present, you will be confronted by a lack of stock and rapidly rising prices. Conversely, if you own an investment property, it is becoming more and more of a landlord’s market, and you will be seeing your return-on-investment flourish. 

So, what are the chief causes of rising rent? Primarily, supply is outweighing demand. A considerable number of would-be first home buyers have been priced out of the market recently and heavily affected by the rising interest rates. And sadly in some cases homeowners who locked in a property at the historically low interest rates, are no longer comfortably able to service that loan, inducing them to rent until interest rates stabilise.

Airbnb listings as proportion of rental dwellings in Sydney Photo: supplied

Another factor contributing to the short supply of rental properties is the Airbnb effect that has attracted many long-term rental properties to transition to short term rentals. Although the increased maintenance required to sustain an Airbnb property is not attractive to all investors, there are still enough out there who have withdrawn their long-term rentals, creating an even greater shortage in supply. 

Add to this, the number of homes that were purchased by first home buyers (see previous blog here) over the last ten years, assisted by increasing state and federal government incentives, has left the rental market under even more pressure from a supply perspective.


There has also been a resurgence of international travellers and students who want to live medium term in Australia. Many wealthy parents of international students are once again seeking high quality rental properties in areas that are well connected transport wise, have multiple local amenities and are reasonably close to universities placing further strain on supply (see previous blog here).

Finally, with the escalating prices of the Sydney real estate market across recent years, many landlords chose to sell their rental properties to homebuyers, and capitalise on the record high property prices, further draining the market of rental property. 

All these factors combined have affected the market considerably, meaning that what is out there now is snapped up quicker than ever due to high demand and scarcity of product. However, if you are an existing investor, looking to invest in your first rental property or add to your existing property portfolio, things are looking pretty darn good. 

Cramer have a large selection of apartments that each bear the ideal investment property fundamentals – incredible location in some of Sydney’s most popular suburbs, award-winning architects, impeccable design, premium build quality aimed at longevity, fabulous finishes, great development facilities and some of the best restaurants, cafes, bars and boutique shopping in Sydney. See below for intrinsically rentable apartments…

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The Cramer Guide to The best places to go and things to do in Marrickville

To learn more about Wicks Place and receive this as a PDF email emma@cramerproperty.com 

Surry Hills Village: ‘Why I bought a penthouse off the plan during a pandemic’

Ask Mary-Jane Salier — known simply as ‘MJ’ — why she and her husband, Kris Gale, have bought a penthouse off the plan in the Surry Hills Village development during a pandemic and she’s matter of fact.

“Yes, it’s a tricky time, but I’m an optimist at heart,” she said. 

 “TOGA [the developer] does have an excellent reputation for delivering a quality product and I feel as though we know what we’re getting.” 

And MJ, who leads the international regulatory team for US-based communications company Verizon, and Kris, who presents Fire Up! on FBi Radio, aren’t the only “optimists”. 

The original eight penthouses sold out in record time*. But we are pleased to introduce the last remaining penthouse has been re-released by the developer. Available now (click to view)

*This original article has been abridged & updated with current 2022 information

Make It and Create It in Marrickville

Mulga the Artist for Perfect Match

The last few years of lockdowns and isolation periods have taught us a great deal about hobbies and activities. Many people have chosen to use this slowdown positively to learn some new skills. Marrickville is a hub of arts and creativity with a variety of creative activities to explore.


There are so many artist studios located around Marrickville that the council runs the Creative Trails annually in August – go along to see art being made and peek into artists studios in your local area.



Many of these artists and craftspeople also teach their crafts from their private studio spaces. Why not learn Linocut Printmaking with Maggie Stein, Drawing and Painting for Beginners at Scratch Art Space and Silversmithing at Squarepeg Studios to name just a few.





For all-round creativity, Makers Space in Gerald Street hosts a huge array of activities from ceramics, metalwork, carpentry and jewellery making. This large workshop space houses a collaborative of artist studios and can offer membership plans (like WeWork) to access facilities to work on your own projects.



Located in the heart of the recently renovated Marrickville Metro, Hypmotive Hub is a one-stop shop for locally made artisan gifts. They also host a monthly market (next one is Saturday 13th August). It’s also a teaching space for Pottery Workshops where you can learn to craft the perfect vase for your stylish home. It’s not just all for adults - if you have a little one in your life, you can book a Kids Birthday Party and let your little ones get creative with clay.




Lil’ Crafters is another great location for those with younger kids. Based in McNeily Park near the Marrickville station, it’s a craft and messy sensory play space for babies to preschoolers. Everything is provided so you can enjoy getting creative without having to trash your own living space.



If you want to soak up the arts without getting your hands dirty then you may want to check out the council organised project Perfect Match - a walking tour of public Graffiti Artworks around the Inner West. 

Head to Camelot Lounge at the end of your tour for a refreshing beer, soak up the quirky atmosphere and decor and hear some live music. They also hold life drawing sessions with a burlesque twist at the Camel Arts Club every Wednesday. 




This is just a selection of the Creative and Artistic things on offer within walking distance of Wicks Place. Contact Cramer today to get your FREE Guide to Marrickville for more fun things to do.

Great News For First Home Buyers

New financial year brings even more federal government support for those buying their first home.

The Australian Federal Government has ushered in an unprecedented level of support for first home buyers this new financial year. On July 1, the Federal Government opened up 40,000 new places under its First Home Guarantee Scheme. The newly appointed labour government has also announced a Help to Buy shared equity scheme, where it will help eligible first home buyers by contributing up to 40 per cent towards the purchase of a new home.

Administered by the Federal Government’s National Housing Finance and Investment Corporation (NHFIC), the New Homes Guarantee Scheme is open to individuals earning up to $125,000 a year or couples earning up to $200,000 who are looking to purchase their first home. Under the scheme, first home buyers can apply for a loan through one of the scheme’s 32 lenders for the purchase of a property in Sydney worth up to $900,000.



Home buyers usually are required to pay lenders’ mortgage insurance (LMI) if they purchase a property with a deposit of less than 20 per cent. But under the scheme, the NHFIC guarantees up to 15 per cent of the value of the property, meaning approved buyers only need to pay a 5 per cent deposit and avoid paying costly LMI insurance.

The number of places under the scheme has now been expanded from 10,000 to 35,000 a year. An additional 5,000 places are open to single parents who will only be required to pay a 2 per cent deposit towards the purchase of a property.



The Federal Government says its new Help to Buy scheme will see eligible first home buyers in Sydney save up to $380,000 on the purchase of a newly built home or apartment. Open to 10,000 applicants a year, the scheme will see the Federal Government contribute 40 per cent to the purchase of a new home or 30 per cent to an existing home.

Successful applicants will only require a 2 per cent deposit towards the purchase of a property worth up to $950,000 in Sydney, again removing the need of costly LMI insurance. To be eligible for the scheme, applicants must earn less than $90,000 a year or $120,000 for couples. Homebuyers are not required to pay any costs related to Federal Government’s share in their property, significantly reducing the costs of their mortgage.



And don’t forget the First Home Super Saver Scheme - this enables first home buyers to build a home deposit inside their superannuation accounts by up to $15,000 a year or $30,000 in total. The First Home Super Saver Scheme effectively allows first home buyers to build a home deposit quicker given their extra super contributions are taxed at the concessional rate of 15 per cent. Buyers can then withdraw the savings when they are ready to buy their first property. The key requirement is that applicants must live in their home for at least 6 months in the first year after purchase or construction.



So if you are near being able to realise your first home dream, check out Cramer’s incredible properties below:

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How to prepare your home for sale

Staging your property, the new term for styling your home or investment to attract buyers, has become, quite literally, an art form. Companies now exist who will come into your property and style it to showcase it to its best effect, but this comes at a cost. If you can’t afford it, don’t despair as most of us are perfectly capable of staging our own property if we follow some simple guidelines.

 

Properties that look good are more alluring to buyers as they can more easily envisage themselves in aesthetically pleasing homes. Clean, uncluttered spaces present as the most attractive to buyers so let’s start with the obvious. Remove excess furniture and minimise personal items such as photos and unattractive gifts from loved ones. Remember, less is almost always more. Now is the time to remove all things sentimental unless they are of design significance - you might enjoy seeing your treasures but to a potential buyer it just looks like clutter.

 

If your furniture looks cheap or tired, either ditch it completely or invest in an attractive alternative. It doesn’t have to cost a fortune. Try affordable homeware stores such as Matt Blatt.

Small touches can make a big difference. Fresh flowers, stylish accessorising and comforting scents are always a hit, creating a feel-good vibe in your home. On-trend botanical print cushions, lush throws, beautiful framed prints, gorgeous candles and that divine smell of freshly brewed coffee will all appeal to the senses of your buyers.

 

Check out the paint finish and clear any evidence of mould – this weather is creating mould in places it has never previously appeared! Where there are marks on the paint, a pot of gumption will be your new best friend. Try a bit of spot cleaning and you will be surprised how your walls will spruce up. Ideally paint is white or a pale grey to create the greatest sense of space and light. Where there is a feature wall or signature colour in a room, check whether it is on trend and if it is not, paint over it.

Create the illusion of separate zones. Where you have an open plan living and dining area, make sure your styling creates a sense of separate purpose. If the area is small, just have one couch and get a smaller round dining table as these will allow for a greater sense of spaciousness. Whether your outdoor area be a balcony, courtyard or backyard, make it an extension of the living area. Even the smallest balcony can have a tiny round table and chair to offer a separate space for a morning coffee, evening cocktail or to read a book. With this in mind, set up the areas with props, eg books on side tables, laptop in study nook, champagne glasses and candle on outdoor setting.

If your property is a little on the dark side, make sure you have ample lighting. Where overhead lighting is deficient, invest in some floor and desk lamps to brighten up the spaces. Stick to a very light colour scheme, preferably bright white on the walls and ceilings and light coloured furniture. Place lovely bunches of flowers around and the odd bright coloured cushion.

If there are any glaringly urgent repairs needed, get them sorted as things like leaking taps, broken windowpanes and chipped plaster walls are off-putting to buyers. If your property needs a full renovation and you are not going to be the one to do it, there is hope when selling - work with its existing attributes. Always check under carpet to see if there are floorboards underneath as ideally you would expose these. Stripping your property back to its bare bones will allow buyers to see the potential that lies below. Style it in a rustic, shabby chic way, being careful to minimise furniture.

For all properties, the final non-negotiable is to make certain it is spotlessly clean and smells lovely. If you are time poor, hire a professional cleaner or if you live in the property you are about to sell, as soon as you know you will put it on the market get into spring cleaning mode. Take down curtains and wash them where possible, clean out and tidy cupboards as more buyers will open them than you would think. For the best tips on getting your home in ship shape, take a look at our home edit inspired piece in the link below and best of luck with the sale!

In-coming overseas students set to surge and boost Inner City apartment market

Over the past two decades, national revenue generated by international students has become more and more lucrative. Then along came the pandemic, wrecking its havoc, with one of the big casualties 'economically speaking', this unexpected loss in revenue. At the end of 2021, Nick Reece, now Deputy Lord Mayor of Melbourne, called for a “massive wave of new immigrants to help get the city back on track” and this was equally true for Sydney. 

As if heeding Reece’s call, in recent months there has been a huge surge in approvals for international student visas, with the Australian Financial Review just reporting a massive increase in approvals for student visas from Nepal alone, with approvals running at an exceptionally high 85 per cent. And applications for visas from China and India, the two largest source countries for international students, are also very high. This news cannot have come at a better time for the real estate market and it is inevitable that history will repeat itself with the positive effect it will have on revenue. 

One of the key factors set to boost revenue is the vast numbers of students whose wealthy parents opt to purchase an apartment for their child, in addition to paying for a great education. The lure of real estate in our promised land cannot be underestimated, particularly as the global state of affairs makes Australia seem like a safe haven by comparison. And many of these parents are now looking for a good quality product by a reputable developer in suburbs where their child is enrolled. 

Even if not purchasing a property for their child, many parents look for luxury rental properties to create a desirable home away from home. And as the influx of students will substantially increase demand for the rentals close to campus, this additional renter demographic about to hit the market is great news for investors. 

Since the Covid-19 pandemic, the state of NSW, and Sydney in particular, lost $272.7million in international student revenue, and this included lost rental income due to the lack of international students. A report by real estate group, Juwai IQI, cited “Universities have lost hundreds of millions, but Australian landlords have lost an even larger share of foreign student rental income.” 

In summary, with interest rates rising and rental vacancy rates declining, once again as people move back to the City in droves post-pandemic, this student influx could be a further injection into the mix that will keep the market buoyant.

For outstanding apartments in locations close to universities and tertiary education campuses, check out Cramer’s must see properties below.

Wicks Place, Marrickville – close to Sydney University, UTS & Macquarie University via numerous public transport options (bus, train, metro)

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Surry Hills Village, Redfern – close to Sydney University, UTS & UNSW via numerous public transport options (bus, train, light rail)

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