James Kirby of The Australian newspaper wrote on the weekend and I quote, “When cash rates were 6% and rental yields 4% or 2% after expenses the argument for property was weak…”
“…Now with interest rates at .75% , rental yields on property look a lot better”. Those investors who pay cash for a property investment can expect yields of 2-3% on their outlay plus capital gain.
If an investor wishes to mortgage an investment property and either negatively gear or look for a cash neutral investment, the return on equity is excellent because of capital gain. However property is not a liquid asset. Purchase of inner suburban property can provide excellent results. A good example of this came from an auction result in South Yarra where a property purchased in 1990 for $173,000, sold on Saturday for $997,000!!
Avoid the property pitfalls and TALK TO US TODAY by calling 0418 500 483 or emailing Brian.
Who says property in Melbourne is not affordable for young couples.
Try Doreen, where a lucky buyer on Saturday bought a 4 bedroom house with all the trimmings for $578,000. Buying that on a low deposit at today’s interest rates makes buying a lot cheaper than renting.
The level of interest in property purchase is unprecedented in this writers long (48 years) experience in buying and selling real estate.
Since the change of confidence created by the “miracle” election win by the Libs and the ever decreasing interest rates, buyers are out there in high numbers. Typical on Saturday, across many price ranges we witnessed up to 30 groups through opens and multiple bidders at auctions. Prices are flying for the above reasons plus a huge shortage of stock. Good news ahead for buyers as stock is coming on to the market for auction and private sale with big weekends expected in October and November. Good news for property owners across the board!
Avoid the property pitfalls and TALK TO US TODAY by calling 0418 500 483 or emailing Brian.
