Residential rents rising as fast as property prices are attracting investors seeking higher yields, a hedge against inflation and generous depreciation and tax breaks. House rents in some of Australia’s capital cities have risen between 15 and 20 per cent.
House prices in some suburbs on Sydney’s northern beaches and the Gold Coast have doubled every three to four years in the past decade, fuelled by low levels of stock and a growing number of affluent buyers.
There are numerous opportunities for astute investors and consumers to take advantage of. Aleks Vickovich and our expert writers break it down.
Surging demand and dwindling rental supply have fuelled a jump of more than 22 per cent in median rents in some inner-city Melbourne suburbs in the past 12 months, and more increases are expected as vacancy rates tighten.
An earlier and potentially bigger interest rate rise could trigger a sharper initial fall in house prices if higher mortgage repayments and lower borrowing capacity spook buyers.
