news

Property investment to surge in 2013

By Staff Reporter

This year has been hailed 'the year of the property investor' by one industry group, pointing to low interest rates and strong median rental yield.

Smartline Personal Mortgage Adviser’s executive director Joe Sirianni said that interest rates are now below rental yields in many areas and will attract investment.

Looking at Australian Property Monitors’ statistics (Rental Yield Report) Mr Sirianni pointed to yields that ranged from 4.25 per cent (for Melbourne houses) to highs of 6.22 per cent (for Darwin units), compared to currently achievable 4.99 per cent fixed rates.

“These kinds of figures are a rare treat for property investors, particularly in a capital city,” Mr Sirianni said.

“With interest rates at low levels, strong rents, low vacancy rates and a shortage of rental properties in some areas, there’s a lot for property investors to be excited about.

“Now that people can access their self-managed superannuation funds to buy property, and first home buyers have retreated from the market, 2013 is increasingly shaping up as the year of the property investor,” he said.

Currently, houses in Brisbane, PerthPerth, TAS Perth, WA, Canberra, Darwin and Hobart, and units in Sydney, Brisbane, Adelaide, Perth, Canberra and Darwin have yields above the potential lowest achievable fixed rates.

APM predicts further upward movement in rental yields making this picture even more attractive.

However, the interest rate lows are less certain with economists predicting a maximum of two more cuts, or that the rate cutting cycle has already bottomed.

Property investment to surge in 2013
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%