MORE PEOPLE are choosing to buy investment properties as record low vacancy rates reveal a potential "crisis" in the rental market.
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Other market forces, such as record low interest rates and flow-on effects from the Royal Banking Commission, are also driving this limited rental supply.
The Real Estate Institute of NSW's October vacancy report revealed the Riverina's vacancy rate was 1.1 per cent, further dropping from the previous month.
This means that only 1.1 per cent of homes available for rent had been left vacant.
Fitzpatricks Real Estate director Paul Gooden said a limited supply could be problematic for university students starting at Charles Sturt next year.
"University goes back in March and if the demand continues, we'll possibly be in crisis," Mr Gooden said.
"Low vacancy rates create a whole other set of circumstances, such as reviewing rental rates and pricing and finding the shift in the market.
"Some factors are self evident: record low interest rates and high rental yields of six per cent plus and tax write offs, make it a good opportunity."
One Agency Wagga principal Colin McGill said more people are choosing to buy instead of finding a property to rent.
"We're talking to people, with family members going to university for three to five years," he said.
"We're seeing more of them buying for students and their family members.
"We're getting more students starting next semester than normal."
Hayley Kotzur, 23, has just finished studying at CSU and lives just a short walk away in her parent's investment property in Boorooma.
"I moved here from Albury and my parents chose to buy an investment property here because of how close it is to the university," she said.
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Ms Kotzur has shared the residence with up to three other people and said most of her friends choose to live in share houses rather than on campus.
"It's half-half, but I find a lot of them choose to live in share houses after their first year.
"Share houses are socially good; it has it's challenges, but there's nothing that wouldn't be more challenging than living on uni where there's less freedom."
Professionals Wagga senior property manager Mandy Smith said the agency only has 15 properties available for rent, but applications for five homes are pending.
"Students are looking before Christmas because they want to be settled before uni starts," she said.
"But come January, we'll hit the ground running and it will be a problem as there are not a lot of vacant properties in Wagga.
"I've noticed that parents, with students doing longer courses, like veterinary science, are buying the houses and then bringing them to the agents to manage the share houses.
"Big, four-bedroom homes in Estella are often shared by students." Ms Smith said share houses are often more financially viable for students than living on campus.
She said banks tightening their lending has caused an "influx" in people renting.
"It's hard to get finance these days to buy," she said.
"The solar farm at Bomen has also created competition as at least seven big, furnished properties in Estella have been leased for share houses for those workers."