Rents Are Down But Returns Are Up for New Investors
May 17th, 2017 by REMAX WA
Geoff Baldwin – MD RE/MAX Investment Division
During the 1990’s and right up to around 2010 it was extremely rare to find a property that could be positively geared however, with falling property prices and record low interest rates there are many opportunities despite rents being lower.
It is now possible to locate many properties where the rent will easily cover the mortgage repayments and often also the rates and management fees especially when tax concessions come into play.
In any cycle rents returns will fluctuate and although they are currently down around 15 percent on 3 years ago they will be sure to bounce back up as the market improves.
Unfortunately, most first-time investors buy when the market is running hot and hence they tend to pay a premium price but prudent investors buy when the prices are down and when they have a wide choice.
People looking to invest in property should seek the advice and guidance of an experienced investment specialist agent but one thing is certain, now is the time to act.