If you’re an investor with your eye on real estate in Bentleigh East, the latest affordability figures could be just what you need to take action. During the final quarter of 2015, the Adelaide Bank/REIA Housing Affordability Report reveals that the cost of buying and maintaining a home increased, which may convince some tenants to stay in rental property.
The median family income needed to meet the average mortgage repayments registered at 32.4 per cent in quarter. Rental tenants, on the other hand, spent an average of 24.6 per cent on their housing costs.
The Real Estate Institute of Australia (REIA) suggested that more properties are needed to bring down costs for buyers. This is something that’s likely to take a considerable amount of time to rectify, indicating there’s a window of opportunity for investors to make the most of.
Negative gearing is also something that’s helping to counter affordability issues. The Real Estate Institute of Victoria (REIV) explained that removing negative gearing could have a further knock-on effect for other parts of the property market.
“If investors withdrew from the established home market in this vital property belt, it would cause a significant shortage in rental supply and impact heavily on the government of the day,” noted REIV president Geoff White.
For the time being at least, investing in property in Bentleigh East makes sound financial sense. As the REIV points out, Melbourne has seen a population surge over recent years, meaning there are many people in search of top quality rental properties.
For help getting onto the investment ladder in Bentleigh East, speak to Matt Hurlston and the team at Ray White Carnegie. We’re on hand to help you find your ideal property and everything else that goes with it.