This month the HOT topic is rental prices on the rise, as recent statistics show that South Australians would rather pay excessive rent in prestige suburbs rather than purchasing property, in many instances.

West Lakes is the most expensive place to rent in South Australia, which comes as no surprise as it offers some of the most luxurious homes in close proximity to the beach and great shopping and sports facilities. The median weekly rent price for a house in West Lakes in 2011 is $588 – reaching nearly $1000 a week in some properties. Next on the list is Stirling, which offers picturesque country living with a median weekly price of $550 in 2011.

The most expensive rental price for a unit is $475 a week in Rose Park, which isn’t a surprise as it attracts singles and couples wanting suburban living in close proximity to the city.

Suburbs that have shown the largest increase in weekly rent include Glenelg homes, which have doubled their median weekly price from $245 in 2010 to $490 at the end of 2011. West Beach has also seen an increase of just over 40%. Rural suburbs have also noticed a rise, as Whyalla is up 38% and Roxby Downs nearly 30%. The mining boom has attracted a lot of people to these areas which will only increase in the coming years.

On the other side of the spectrum the average weekly cost of renting has fallen in Aldgate, St. Georges and Newport Quays, with the cheapest housing accommodation found in Peterborough, at an average of just $145 a week.

Interestingly enough, landlords in Peterborough receive the highest gross rental yield of 7.7 per cent, whilst gross rental yields in West Lakes were only 4.3 per cent in 2010. For this reason, when purchasing for investment purposes, I suggest calculating gross yield before looking at an increase in rental income.

Now, everyone has heard the saying “It’s not what you know but whom you know..” and this is very true in many facets of life including real estate.
Real estate agents have historically been commissioned by the vendor, at Harris Real Estate we believe a strong relationship with an agent can also be beneficial for a buyer.

From being one of the first to hear about new release properties to having access to pre-release deals, established relationships with real estate agents is one of the best ways to ensure a buyer finds a perfect property relatively fast.

I see a strong trustworthy relationship as beneficial for both parties. The buyer has access to the finest properties before the general public and the vendor has the chance of selling the home before time and money is invested on open inspections and further advertising.
I value the relationships I have with my buyers in the highest regard – as I do my vendors. For this reason when it comes to the negotiation process both parties involved feel they received the best deal.

A great real estate agent is also a good source of industry specific information.

Agents are aware of local medium property prices, demographics and trends which is always helpful in making an informed decision.

Buyers should become familiar with agents by visiting numerous open inspections, introducing themselves and explaining the elements they are looking for in a home. An interested agent would begin communication with a follow-up call to measure your interest in their property and from there the relationship begins.

Well that’s it for another edition of Hear it from Harris. I hope you have been able to take some good advice from this edition. Remember February looks like the month that interest rates may be lowered which will help to even out the playing field between buyers and sellers.