Great time to invest

With interest rates the lowest they have been in years, property investment is well and truly within reach for the everyday Australian, a leading industry figure said recently.

Reviewing statistics published by property analytics provider RPData, Aussie Home Loans Executive Chairman John Symond pointed out that there are at least half a dozen suburbs in each capital city where gross rental yields are greater than the cost to repay the mortgage.

In some cases, rent is increasing year on year.

“It’s the perfect time for the average Australian to consider a move into property investment if they have some money saved”, Symond said.

“Both fixed rates and variable rates are the lowest they have been in years”, he said, adding that some have even gone below 5 per cent.

“Housing prices in some areas are historically low but are starting to move back up and now investors can earn rental yields between 5 and 10 per cent in some areas”, Symond said.

RPData’s Senior Research Analyst Cameron Kusher explained that the research looked primarily at areas where the ordinary Australian on an average income may be able to afford to enter the investment market.

“As such we looked at properties that were under $500,000, and which earned high gross rental yields”, Kusher said.

“We also found that many of these were also experiencing significant rental growth over the 12 months to December 12.”

“Every day Australians can seriously consider moving into the investment property market and having the rent cover the mortgage”, Symond added.

“In effect they could ‘set and forget’ an investment plan for their future”, he concluded.