First National

First National

Friday, May 31, 2013

Bricks and mortar proves hot thanks to low rates, high yields


SYDNEY: the nation's investment capital, with investors accounting for almost half of all sales in NSW.

'The market had been flat for a couple years... but now rental demand is strong, prices are going up and interest rates are down.''

PERTH: Perth's yields were higher than Sydney's because the mining boom had created a severe shortage of rental accommodation - median price of $318,000, apartments in Perth's inner city yield a whopping 10.3 per cent on average.

Perth real estate agent Brendon Habak, of Realestate 88, says the number of investors in Perth has doubled over the past year, with more east coast buyers being drawn in by high yields. ''I'm originally from Sydney, where you buy an apartment for $600,000 and you get $600 a week rent,'' he said.
''In Perth, if you bought for $600,000, you are going to get $900 a week back.''

More small investors are expected to enter the market this year, with fixed-term deposits at historic lows to enjoy the capital growth.

''People over the past few years have built up stockpiles of cash and now they are at a point where they are getting hardly any return on it,'' he said.
''They would be getting about 3.5 per cent yield from a bank, when you can get a yield of 5 per cent on a $500,000-$600,000 apartment."

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National investment hot spots.

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