Rental returns to gain strength
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In today’s patchwork property market investors have to be more selective when seeking out capital growth, making ren
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Speaking to Smart Property Investment, Mr Kusher said this year property values would grow at a slower rate than inflation while rents will continue to rise.
“I think investors need to have a greater focus on rental returns rather than capital gains,” Mr Kusher said.
“What we have seen over the last 18 months is that rental yields have started to climb and I believe we will continue to see them climb,” he said.
“Particularly in markets like Sydney, Brisbane and Perth you will see quite strong growth in rents.”
Over the three months to February 29, Darwin recorded the highest gross rental yield for houses at 5.8 per cent while Canberra claimed the highest yields for units at 5.8 per cent, significantly higher than the national average for capital city houses and units at 4.1 per cent and 4.9 per cent respectively, according to the RP Data February Hedonic Daily Home Value Index.
