 Now is the time to invest
Residential investment properties are the new buzz in Australia's property market. Due to high rents and low interest rates, investors can be sure their property will be profitable straight away.
With record low rates and high rents, buying a first home is now cheaper than renting for many.
According to BIS Shrapnel senior economist Jason Anderson, the current conditions in the market make now an ideal time for both investors and first home buyers.
"People can take out a fixed rate and lock that in for the next few years at less than 6 per cent. At the same time rental yields are up to 7 per cent with strong rent growth still to come," Mr Anderson said.
Mr Anderson says that prices have already started to rise at the lower end of the market due to the competition at this part of the market.
But some potential buyers, both investors and owner occupiers, are still holding back because of uncertainty about the economy and job security
First home owners are now finding that buying is a similar cost to renting, while investors can have positive cash flow from day one with the current mix of low rates and high rent.
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