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Higher rental yields to attract more investors

By Michael Masterman
1

Investors are set to drive growth in the residential property market, according to brokers.

Rael Bricker of House + Home loans said he expects high rental yields will attract investors to residential property.

“Combining good rental yields with attractive fixed rates is bringing investors into the market,” he said. “Rental yields have jumped up dramatically, making the average rental property almost cash neutral.”

Mr Bricker said reasonable rental properties in some areas are now getting above 5 per cent rental yields.

“If you’re getting rent at 5.5 per cent and paying 4.7 on a fixed rate you are pretty much neutral or cash positive, even after tax,” he said.

Matthew Rogers from Aussie said investors would become more active following the recent election.

“I think the recent political landscape had put a hold on a lot of people’s plans and it probably affected investors more than anyone else,” he said.

Mr Rogers said people have been waiting to see who would be in government and now, what the new government will bring.

“I think investors have been waiting to see whether it all has a real effect or not,” he said.

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