Property Management Services
"My task as an asset manager is to maximise return and minimise vacancy, after 24 years of experience I have found the most effective way, is to start at your dream price, prior to the property being ready and then steadily dropping rent slowly if needed, until rented. If your property is empty for more than two weeks, you are asking too much on the market. Bad tenants pay the highest rent.. I have found that it is not uncommon for feral tenants to pay top rent because they can't get anywhere else, and if a good tenant thinks they has been overcharged then they are unhappy (and can get very fussy), so even if you get the higher rent , it's not always the best outcome. Unfortunately, there is always an exception to the rule and I can be wrong, so I am happy to continue following your instructions, whatever they are. However it would be negligent of me not to inform you of the commercial realities I am faced with." Peter Agapiou.
MY OPIONION ON THE TOWNSVILLE MARKET; "I have been in the Real Estate industry in Townsville for the past 25 years, during that time I have never seen Townsville severely hindered by rental oversupply, it has been a steady performer for all of those years. Unlike other Cities who source of income is tied to one major industry I.e. tourism, or manufacturing (which for mind have a bleak future going forward in Australia). Townsville has the benefit of receiving revenue stream from a number of areas be it the Army, the surrounding rural, Government institutions and of course, the Mining industry. We are in the hallway of a mining boom and a lot of that wealth is filtering through to us in the form of fly out fly in accommodation, Over the past several months and during the next several years there will be several thousand troops and their families posted in the town, most of the defence force is offered rental subsidies and we find them to be mostly ideal tenants. It has also been my experience recently to see upward rental pressure on rents and increase in demand on executive rental properties, with potential tenants being more comfortable paying around the $500 per week For the last 4 years during the GFC the vacancy in my office got no higher than 3% and now it is at between .5% to 0, excluding of course new listings as they come in. The last 2 months I have been at around 100%. Most properties are rented before they come empty. If you check my website, this can be validated as out of approximately 160 rentals, I have 4 available and two of those are asking for a little too much."
"It is important that you realize, that this is not meant to encourage people to purchase in Townsville. It is the truth on the rental market as I see it, all I have mentioned are facts. I feel, based on these facts, that the rental market for the immediate to medium term future is as strong as you will find anywhere in Australia. Top 5% would be a fair call in my opionion. The sales market seems to be still slowly sliding with approximate decrease of up to 8% over the last 15 months; rental returns on investment are starting to look good. It is time to start buying in my opinion, with a five - ten year plan in mind. Peter Agapiou Mr Realty