Low interest rates, tight rentals and a rising property market is creating ideal buying conditions for investors.
When it comes to investing in a rental property, location plays a key role as capital growth often provides a major source of long term returns.
The golden rule is to look for a location offering three important characteristics: good transport links, a growing population and plenty of nearby amenities including quality schools, parks, shops and leisure facilities.
Figures from research group RP Data ¹ show Brisbane’s market has delivered a total (year on year) return of 6.2%r. For growth potential, the Sunshine Coast is worth a look with values likely to be boosted by construction of a major hospital due for completion in 2016.
New South Wales
The Sydney property market achieved a total return of 7.3% over the last year. Check out units in western/south western suburbs like Blacktown or Fairfield where prices are below $250,000 and yields of around 5% could see a rental property pay for itself.
Talk to us about an investment loan to help you make the most of a rental property.
¹ RP Data-Rismark February Hedonic Home Value Index Results, 1 March 2013