A recent report from the Real Estate Institute of Australia (REIA) indicates that rental yields must rise if a rental crisis is to be averted.
Across the country in the most populated areas rental vacancy rates are hovering around the 1% level. This stressed situation is leading to rent auctions for the few remaining properties on the market.
Recently BIS Shrapnel, the business research and forecasting company, said they expect rents to increase across the country with Sydney experiencing a 40% increase during the next four to five years. This will begin in the city centres and radiate outwards. It said that investors wouldn't feel happy to return to property investment until 2009 at least.
With this is mind, as a small investor, it could be a good time to beat the market and buy a reasonably priced property in the outer suburbs, sit tight and wait for the returns to get better.
So if you are you looking to buy an investment property but don't know where to start, look no further as the June issue of Your Mortgage shows you what areas are hot at the moment and the factors you'll need to beat the rest of the market and spot the next star suburb.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan