Everybody is currently fixated on rising interest rates. What people are not focussing on is what a good time it is to be a property investor.
The market is currently in a state of flux. Prices are becoming more affordable, while rental yields remain strong. This creates an excellent opportunity for investors to buy in at lower prices, and enjoy greater returns on their investments.
Another advantage of being a property investor now is that you will have access to experienced buyers agents who can help you find the best properties effectively. This means you can maximise the return from each rental property without having to spend long hours worrying about maintenance or tenancy issues.
Currently, there are just over 33,000 properties advertised for rent in Australia, about half the number there were a year ago.
Rental properties are currently (and will continue to be) in critically short supply for several reasons;
- Over the last 30 years, despite Australia’s population increasing by 8.4 million people, state governments have sold off more than 100,000 publicly owned rental properties.
- Less people are able to afford to buy their own home due to rising prices and interest rates coupled with low wages
- Overseas migration is about to ramp up, and international students will be returning to Australia
According to investment specialist Michael Yardney, ‘The 2020-21 property boom saw many investors offload their properties to take advantage of booming prices, but now, with fewer investors owning and buying homes, the tight supply of rental properties combined with strong demand is continuing to put pressure on prices.”
Investing in property now can be a smart move. If you plan ahead and invest wisely, you could reap the benefits of strong rental returns while also potentially benefiting from any increases in property prices over time.
To make sure you get the most out of your investment, it’s important to do your research, seek advice from experienced buyers agents, and take into account potential risks. With these things in place, investing in property can be an excellent way to achieve financial security and freedom.
So, not only is there a major lack of rental homes, rental prices are increasing at never-before-seen rates. PropTrack’s latest rental report shows that median weekly combined rents increased 4.3% over the September quarter – which is the fastest quarterly pace of growth on record.
Year-on-year rental prices have increased by 10.3%, which is the strongest growth witnessed in seven years.
When all is said and done, it is certainly an incredibly good time to be an investor in the Australian property market. By making smart decisions – such as seeking the advice of experienced buyers agents – you can take advantage of rising rental yields and lower prices for maximum returns on your investments. So don’t let fear keep you from investing in this exciting market
So with rents growing at such a rate and less buyers in the marketplace, now is the time to capitalise.