news

Good news as rents inch up

By webmaster

It might be bad news for renters but for investors, news that rents are on the rise is more than welcome.


Australian capital city rent prices increased by a weighted average of 4.2 per cent in the year to December 2010, Australian Bureau of Statistics figures revealed this week – significantly more than the annual rate of inflation, which came in at 2.7 per cent.

The sharpest residential rent increases were in Sydney and Darwin with increases of 5 and 6 per cent respectively.

Rent prices also rose substantially in Canberra and Adelaide with increases of 4.8 and 4.4 per cent.

On top of this, expectations are that vacancy rates will tighten further into 2011.

According to SQM Research, national vacancy rates sat at 2.2 per cent in December – indicating a considerably tight rental market.

Louis Christopher, managing director of SQM Research, said anything under three per cent generally indicated an undersupplied market.

SQM Research predicts that residential rents will rise nationally between three and five per cent  2011, with Sydney recording the most robust rental growth of five to seven per cent.

Solid rental income can go a long way towards servicing investors’ debt obligations, and in some cases, can even offset a property’s entire costs.

For investors looking for the best rental returns, be sure to check out a copy of the March issue of Smart Property Investment – hitting newsstands next month.

Together with Australian Property Monitors we’ve compiled a list of the top ten locations for rental yields for every Australian state.

Good news as rents inch up
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%