Shortage of available rental homes in Victoria
If you are considering an investment property purchase in Victoria, you may be encouraged by a recent report regarding supply and demand in the region.
Figures from the Real Institute of Victoria (REIV) illustrate a 55 per cent reduction in affordable rental housing over the last decade.
\In ten years beginning from the September quarter in 2001 through to 2011, reasonably priced rental accommodations have reduced from roughly 14,000 to around 8,700 in the city of Melbourne.
The rental vacancy rate in Victoria's capital is 2.4 per cent, while rates vary throughout regional areas of the state and reflect lower availability in Ballarat and Bendigo.
REIV chief executive officer Enzo Raimondo explained the desired property market equilibrium.
He said: "A vacancy rate of three per cent represents a balanced market where renters are generally able to find a home and investors receive a decent return."
As the current vacancy rate in regional Victoria represents a slight advantage to owners at 1.4 per cent, it may be beneficial for potential investors to consider residential real estate investment in the area.