Why Are Investors Abandoning the Australian Rental Market?

In the face of a nationwide rental crisis characterised by soaring rents, historically low vacancy rates, and a surge in immigration, one might expect investors to be flocking to the real estate arena. However, the reality is starkly different. Investors are hitting the sell button, prompting us to ask the crucial question—why?

Today, we're privileged to have Nicola McDougall — chair of PIPA, join us in dissecting the intricacies of this market upheaval. Nicola brings her wealth of expertise to help us dissect the intricacies of the current real estate landscape. Together, we explore the reasons behind the increasing number of investment properties hitting the market when conventional wisdom suggests the opposite.

Tune in and join the conversation as we explore the forces shaping Australia's property landscape and seek to understand why, in the midst of apparent opportunity, investors are choosing to take a different path.

Episode Highlights:

00:00 - Introduction

01:03 - Who is Nicola McDougall?

01:53 - What's the methodology behind the PIPA investor sentiment survey?

07:09 - What constitutes the national rental pool in terms of property numbers?

12:51 - Is the government a key factor in shaping investor attitudes currently?

15:44 - Some primary motivations for investors selling properties in Australia

23:14 - Understanding factors behind tenancy reform and investor divide

25:33 - Anticipating the impact of regulations and borrowing costs on investor trends

31:27 - What broader issues are indicated by the housing shortage beyond just the rental crisis?

36:16 - The effect of the COVID-19 pandemic on property investors and their market presence

39:54 - Why the expected impact of increased interest rates hasn't played out in Sydney

44:00 - Is the government fully aware of the property market's long-term investment issues?

49:38 - How investors can navigate the tightening credit environment

51:28 - Nicola McDougall’s property dumbo

About Our Guest:

Nicola McDougall has served as the Chair of PIPA (Property Investment Professionals of Australia) since early 2022, bringing to the role her expertise as an award-winning property and finance journalist, author, and successful property investor. As the Director of Bricks & Mortar Media, she has co-authored notable works such as "The Female Investor: Creating Wealth, Security & Freedom Through Property," which secured the personal finance and investment category award at the 2022 Australian Business Book of the Year. Additionally, Nicola has contributed to the 3rd edition of "Property Investing For Dummies" and authored the 1st editions of "Buying a Property for Dummies" and "Property Investing Essentials for Dummies," all published in 2023 by Wiley. With a background as the former editor of Australian Property Investor magazine and head of corporate affairs at the REIQ, Nicola has been a dedicated PIPA board director since 2014.

Connect with Nicola McDougall:

• Nicola’s LinkedIn profile https://www.linkedin.com/in/nicola-k-mcdougall/

Resources:

• Visit our website https://www.theelephantintheroom.com.au
• If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast questions@theelephantintheroom.com.au
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