There’s been plenty of investment activity across the Australian property market over the last three years, and one group believes the recent positive effect on rents isn’t a coincidence. The Real Estate Institute of Australia (REIA) reflected on the latest consumer price index (CPI) data to find that housing costs have moderated.
President Neville Sanders explained that investment in Carnegie real estate and other parts of the country picked up pace back in 2013, and this has had all sorts of implications for the national market.
“In the current debate on negative gearing, the latest CPI figures provide evidence that the current taxation arrangements, which provide many Australians with the opportunity to invest in property, adds to the housing supply and keeps rents lower than they would otherwise be,” commented Mr Sanders.
Investors are still enjoying decent returns on their Carnegie real estate, but not at the expense of pricing out their tenants. SQM Research released rental data for the week ending 4 May, which showed a 4.3 per cent rise in housing rents in Melbourne over the past three years.
Units are where landlords are seeing the highest returns, as these rents have risen 9.6 per cent over the same three-year period.
REIA has warned that if changes are made to the current tax arrangement, there’s potential for rates to increase considerably. This could lead people to experience financial troubles and leave many of the country’s rental properties without tenants.
It can be beneficial to have a real estate agent lending a hand when you’re buying an investment property. Matt Hurlston and the team at Ray White Carnegie can help you find somewhere that fits in with your ambitions and delivers the level of returns you dream of.