Starr Partners CEO John McCormack has agreed with the dramatic shortage of Rental Properties and the inflationary effect it has had on rents as recently identifeied in a report released by BIS Shrapnel.

BIS Shrapnel says an undersupply of new housing will see the average cost of renting rise much more than the cost of buying.

It says record migration is underpinning an already very strong demand for housing, with further population growth of 1.5 per cent expected in the next year.

The report's author, Angie Zigomanis, says there is demand for about 180,000 new dwellings nationally. In the last year, just 155,000 new homes were built.
Mr Zigomanis says there is scope for a lot more growth in rental prices, with vacancy rates so low.

"In most capital cities, 10 per cent plus per annum over the next couple of years at least is probably not unexpected," he said.

He says even if there is another interest rate rise, the cost of buying will not keep pace with the rapid increase in rent prices.

Starr Partners branches throughout the Greater West are well positioned to advise potential investors on the best areas in their local area for investment. Mr McCormack insists, “The opportunity to buy well and receive a great rental return on an investment property makes now a great time to get into the investment market”.