Investors enjoy capital growth

Investors enjoy capital growth

03 May 2011 by Staff Reporter 0 comments

Jessica Darnbrough

While affordability constraints continue to plague first home buyers, it seems the property market is ripe for investors.

According to RP Data research analyst Cameron Kusher, the current trend of rising rental rates means investors can potential snag themselves a bargain that nets good return.

RP Data’s latest Hedonic Home Value Index found capital city home values fell 2.1 per cent in the March quarter, while weekly rental rates grew 4.6 per cent in six months.

“The market definitely favours investors over upgraders or first time buyers. If you don’t need to sell anything first to get onto the property ladder, you can potentially position yourself for some long term capital growth,” Mr Kusher told Real Estate Business.

“With rents on the rise, there is also the potential to find a property with good gearing – if not positive gearing.”

 

Jessica Darnbrough

While affordability constraints continue to plague first home buyers, it seems the property market is ripe for investors.

According to RP Data research analyst Cameron Kusher, the current trend of rising rental rates means investors can potential snag themselves a bargain that nets good return.

RP Data’s latest Hedonic Home Value Index found capital city home values fell 2.1 per cent in the March quarter, while weekly rental rates grew 4.6 per cent in six months.

“The market definitely favours investors over upgraders or first time buyers. If you don’t need to sell anything first to get onto the property ladder, you can potentially position yourself for some long term capital growth,” Mr Kusher told Real Estate Business.

“With rents on the rise, there is also the potential to find a property with good gearing – if not positive gearing.”

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?