Rent prices have been on a tearaway train of increase, making it harder than ever for renters to keep pace. Sit back, dear reader, because we’d love to enlighten you on exactly why and how this daunting reality has come to be. Furthermore, we’ll let you in on how this situation is not only impacting renters but also causing landlords to exit the market. Sound tough? Well, don’t worry! We’re also going to introduce you to an alternative that provides landlords an opportunity to earn a high Return on Investment (ROI) while also making it a hands-free investment. Yes, you read that right – hands-free!
“The rent price surge is a complex phenomenon due to various factors – and unfortunately, it’s making keeping a roof overhead a struggle for many and turning landlords away from the market.”
Here’s What You Need To Know:
- The reasons behind escalating rent prices
- The struggle renters face to meet the high rents
- Why landlords are vacating the rental market
In recent years, rent prices have experienced a marked increase. The reasons behind this escalation are multifaceted, ranging from rising property values and increased costs of maintenance to a growing demand for rental properties in cities. Urbanisation, coupled with the under-supply of housing, has fueled competition for rentals, driving up prices.
Due to the increasing rents, many renters now find themselves caught in a financial bind. A significant proportion of renters are spending more than a third of their income on housing, which leaves little for essentials such as food and education. This struggle to keep up with the high rents is forcing some renters into precarious living conditions or even homelessness.
Simultaneously, many landlords are making a difficult decision to exit the rental market. They grapple with challenging circumstances like late or non-payment of rent, property damage, high turnover rates, and the continuous need for expensive repairs and maintenance. These factors, combined with increasing regulations and responsibilities associated with being a landlord, have prompted some to seek alternative investment opportunities.
If you’d like to discuss the different investment options that may be available to you, please give us a call to speak with one of our property portfolio managers – or fill in our form to request a callback.
Important note: The information provided in this article is general in nature and does not constitute personal financial advice. If you are unsure whether an investment is right for you, please seek professional advice. If you choose to invest, the value of your investment can both rise and fall so you may get back less than you put in.