The New South Wales Real Estate Institute says the north coast rental market is being squeezed by retirees selling holiday homes to fund their retirement.

The Institute’s Chris Koch said a shortage of properties and increased rents have been a concern for some time. Under-performing superannuation funds and older couples downsizing have sparked the sell off.

Mr Koch said the effect on the rental market has been more obvious over the past few months..

“What I have noticed is that there’s been a few retirement places opening up, new subdivisions or new retirement facilities opening up and a lot of people are selling to downsize to cash back,” he said.

“I think that’s going to get more prevalent in the next six months.

“You’re going to see more of it because it’s been a theme on the mid north coast for quite a while because we have a high percentage of retirees.”

Mr Koch said older couples are downsizing and looking for ways to boost their funds.

But he said retirees are being frustrated by low returns and under-performing superannuation funds.

Mr Koch said it has led to difficulties for investment property owners and would-be renters.

“What we have noticed is that there’s a little bit more of a squeeze on the rental market at this time of the year,” he said.

“We get a lot of families that decide because the school year that they will move to town.

“Not everyone buys straightaway.

“Typically this time of year the rents climb and the availability, I’d say there’s a shortage of those properties available right now.”

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