The fall in property values across the country coupled with rising rents is creating opportunities for investors seeking positively geared properties, according to a leading analyst.
The October RP Data-Rismark Home Value Index, released yesterday, shows home values in the capital cities fell four per cent in the 10 months to October, while the dollar value of rents has been rising at a four to five per cent pace over the course of the year.
These figures should entice investors looking for positively geared properties, RP Data’s senior research analyst Cameron Kusher told Smart Property Investment.
“If you’re looking to negatively gear a property and banking on capital growth, there’s probably not going to be much capital growth over the next few years,” Mr Kusher said.
“But if you’re looking for a positively geared investment there’s going to be more opportunities, particularly if the RBA cuts rates and we get those passed on from the banks,” he said.