Rental income levels around Australia are skyrocketing at the moment. Tenant demand is at the highest level it’s been for more than a decade, driving rents up to record levels. That’s good news for investment property owners and potential owners.
The latest rental income figures
According to the latest statistics from CoreLogic, national rent rates have increased by nearly 9% over the last year. The increases have been strongest in regional areas, which have seen average rent rates grow by more than 12%, compared to the capital city growth rate of 7.5%.
Likely reasons for this trend include more people from capital cities opting for a sea change since the onset of COVID-19, as well as less people moving from regional areas to capital cities during the same period.
House rents have increased at more than double the rate of apartments nationally over the last 12 months. This could lead to an increased tenant demand for more affordable apartment rents in the near future.
Recent figures also show that regional properties have been increasing in value at a faster rate than city properties. This is the first time this has happened since 2004, and it’s further good news for investment property owners.
Property values in the Newcastle, Lake Macquarie and Hunter Valley areas have increased by well over 20% over the last year. The average price in Newcastle and Lake Macquarie is now $750,000, while it’s $570,000 in the Hunter Valley.
How to get into the investment property market
You can get into the investment property market whether you are an existing home owner or not. If you’re paying off your home, you can use the equity (ownership) you have built up in it over time for your deposit. You can use the rental income from your tenants to make your investment property loan repayments.
If you don’t own a home, you could ‘rentvest’. This is where you buy an investment property and continue renting yourself. It’s an increasingly popular trend, because you can still live in a rental property that may be better than you can afford to buy. But because you also have an investment property of your own, your tenants are also helping you to pay off an asset. Again, the rental income you get from your investment property tenants will help you to make your loan repayments.
How we can help
If you’re looking to get into the investment property market or to expand your portfolio, our experienced and licensed brokers at Wisebuy Investment Group can help you get finance. We can also help you with your loan application.
We service a diverse range of clients in the popular Newcastle, Lake Macquarie and Maitland areas. Our brokers work with more than 60 lenders in the Australian market.
Contact us today for an obligation-free chat to find out more.