More investors to step onto property ladder

More investors to step onto property ladder

19 March 2013 by Staff Reporter 0 comments

Staff Reporter

Capital cities have at least six suburbs where rental yields outweigh the cost of a mortgage which, according to Aussie Home Loans, is prompting first time investors into the market.

For many years, property investment has been seen as the domain of the wealthy investor with cash to spare, but according to executive chairman of Aussie, John Symond, property investment is within reach for everyday Australians.

“Every day Australians can seriously consider moving into the investment property market and having the rent cover the mortgage. In effect they could ‘set and forget’ an investment plan for their future,” said Mr Symond.

Low interest rates and rising rents are encouraging aspiring property investors to take their first step on the property ladder.

After reviewing suburb statistics commissioned from RP Data, Mr Symond revealed there are at least half a dozen suburbs in each capital city where gross rental yields are greater than the cost to repay the mortgage.

“Both fixed rates and variable rates are the lowest they have been in years, with interest rates can be below five per cent, housing prices in some areas are historically low but are starting to move back up and now investors can earn rental yields between five and 10 per cent in some areas, and as high as a whopping 16 per cent  in one area of Darwin.

“Properties with high rental yields are of benefit to those investors who have less disposable income that they can use to pay the property's associated bills.

“If they are earning higher gross rental yields, they can afford to own it in the first place, where otherwise they might not be able to,” he continues.

The best suburb in the country for investors to consider was Bellamack in Darwin, with a 16.9 per cent rental yield coupled with an even bigger 24 per cent increase in rents in the last 12 months.

However RP Data identified at least half a dozen in each city that showed solid investment potential over the last 12 months.

According to RP Data's statistics, in Sydney and surronds Bella Vista, Ultimo, Wyong, Bradbury, Tregear and Jamisontown were all identified as winning suburbs.

Investor hotspots for Melbourne and surrounds were Carlton, Whittlesea, Chirnside Park, Broadmeadows, Melton and Melbourne.

Brisbane investors are looking to Goodna, Woodridge, Dinmore, Wynumm West, Gailes and Waterford West for opportunities.

Staff Reporter

Capital cities have at least six suburbs where rental yields outweigh the cost of a mortgage which, according to Aussie Home Loans, is prompting first time investors into the market.

For many years, property investment has been seen as the domain of the wealthy investor with cash to spare, but according to executive chairman of Aussie, John Symond, property investment is within reach for everyday Australians.

“Every day Australians can seriously consider moving into the investment property market and having the rent cover the mortgage. In effect they could ‘set and forget’ an investment plan for their future,” said Mr Symond.

Low interest rates and rising rents are encouraging aspiring property investors to take their first step on the property ladder.

After reviewing suburb statistics commissioned from RP Data, Mr Symond revealed there are at least half a dozen suburbs in each capital city where gross rental yields are greater than the cost to repay the mortgage.

“Both fixed rates and variable rates are the lowest they have been in years, with interest rates can be below five per cent, housing prices in some areas are historically low but are starting to move back up and now investors can earn rental yields between five and 10 per cent in some areas, and as high as a whopping 16 per cent  in one area of Darwin.

“Properties with high rental yields are of benefit to those investors who have less disposable income that they can use to pay the property's associated bills.

“If they are earning higher gross rental yields, they can afford to own it in the first place, where otherwise they might not be able to,” he continues.

The best suburb in the country for investors to consider was Bellamack in Darwin, with a 16.9 per cent rental yield coupled with an even bigger 24 per cent increase in rents in the last 12 months.

However RP Data identified at least half a dozen in each city that showed solid investment potential over the last 12 months.

According to RP Data's statistics, in Sydney and surronds Bella Vista, Ultimo, Wyong, Bradbury, Tregear and Jamisontown were all identified as winning suburbs.

Investor hotspots for Melbourne and surrounds were Carlton, Whittlesea, Chirnside Park, Broadmeadows, Melton and Melbourne.

Brisbane investors are looking to Goodna, Woodridge, Dinmore, Wynumm West, Gailes and Waterford West for opportunities.

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?