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Missing: spring investors
Chris Vedelago
September 7, 2010 - 9:49AM
Comments 6
With Australia’s residential property sector finally coming off the boil, investors should be set to head back into the market to take advantage of easing demand and weakening buyer competition.
But while owner occupiers and first home buyers are fast disappearing from the market, the latest figures from the Australian Bureau of Statistics show that investors aren’t exactly jumping in to take their place.
It’s a sign of just how strong Australia’s property market became over the last 18 months that investors are now finding it a bit of a struggle to see a profitable way in.
One of the biggest problems is the across-the-board decline in gross rental yields seen in every capital city for both houses and units in the last year, according to analysts RP Data.
(Gross rental yield is calculated as a percentage of the annual rent versus the purchase price; it does not include expenses in maintaining the rental property.)
RP Data estimates that it takes a rental yield of 5.5 per cent or better to be attractive enough to draw investors into the market in any great numbers.
Many capital cities – particularly for houses – don’t even come close to that threshold
Chris Vedelago
September 7, 2010 - 9:49AM
Comments 6
With Australia’s residential property sector finally coming off the boil, investors should be set to head back into the market to take advantage of easing demand and weakening buyer competition.
But while owner occupiers and first home buyers are fast disappearing from the market, the latest figures from the Australian Bureau of Statistics show that investors aren’t exactly jumping in to take their place.
It’s a sign of just how strong Australia’s property market became over the last 18 months that investors are now finding it a bit of a struggle to see a profitable way in.
One of the biggest problems is the across-the-board decline in gross rental yields seen in every capital city for both houses and units in the last year, according to analysts RP Data.
(Gross rental yield is calculated as a percentage of the annual rent versus the purchase price; it does not include expenses in maintaining the rental property.)
RP Data estimates that it takes a rental yield of 5.5 per cent or better to be attractive enough to draw investors into the market in any great numbers.
Many capital cities – particularly for houses – don’t even come close to that threshold
