Rental growth outstrips home value growth

August 14, 2013
David Scouller

New research has revealed there has been 32.1 per cent increase in rental rates in Australia since the onset of the GFC in 2007, compared to an increase of 13.4 per cent combined capital city home values over the same period.

And that’s great news for property investors and upgraders.

A report by RP Data showed rental rates increased at more than double the rate of home values in the last five years, while capital city home values had only increased in line with inflation.

Usually statistics like these would mean an increase in first homebuyer activity, noted RP Data’s research analyst Cameron Kusher. But this has not been the case so far, probably due to recent shifts in FHB incentives.

Instead, it seems upgraders and investors are the ones taking advantage of low mortgage rates to upgrade their current home to a better one.

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