Rental Market - Liviti Property

Sydney’s Highest Rental Yield Suburbs in 2024: Most Lucrative Picks

Daniel Chadrawy on June 7, 2022

Rental yield is an important concept that property investors and first-home buyers looking to invest should understand. We are here to explain the ins and outs of rental yield, to help you get awesome returns from your investments (or future investments).

READ ON if you’re looking to invest in Sydney and want to learn more about rental yield!

What is Rental Yield?

Simply put, gross rental yield is your rental income expressed as a percentage of your property’s value.

It can be calculated like this:

Gross Rental Yield = (Annual Rental Income/Property Value) x 100

If maths is not your strong suit, don’t worry! We are here to make your property journey simpler.

Rental yield is an important factor that investors consider before purchasing a property, as it helps reveal the best investment opportunity.

Imagine you have a property valued at $800,000 in a suburb with a 5% rental yield. Your annual income will be $40k! So, the more rental income you receive, the the higher your rental yield.

For property investors, you can identify areas with high and/or increasing rental yield to ensure you get the best returns on investment to enjoy a positive cash flow.

It can help you to assess your investment property and see how it compares to others in the area. If we’ve piqued your interest, you can learn more about the rental market by clicking here.

Sydney’s Rental Yield

Sydney is a bright and bustling city in New South Wales, Australia, with a population of 51,84,896 in 2024 (According to World Population Overview), projected to grow to 58,75,309 by 2035.

There is definitely a reason for the phrase ‘Generation Rent’, with about 31% of Sydney’s population living in rental accommodation.

Sydneysiders are LOVING apartment life, opting to rent in places with good access to jobs, transport and facilities, rather than buying a house in locations that are further away.

The median listing price for houses in Sydney is $1,442,000 with a $730 per week median rent and a 2.7% rental yield . For units, the median price is much lower at $780k, with $660 rent per week and a 4.4% rental yield. (Source: Savings.com)

Depending on your goals, this could mean that you may be better off investing in apartments, as they have a higher yield compared to houses.

Supply & Demand in Sydney’s Rental Market

A lot has been going on in Sydney’s rental property market. The demand for renting is slowly easing compared to 12 months ago. According to Domain, buyer demand in Greater Sydney has decreased by 19.6%, and by 20.4% across all capital cities.

Dr Nicola Powell, Domain’s Chief of Research and Economics, claims that this change “should logically feed into a higher vacancy rate, but that will take time. This could be an early indicator of an increase in vacancy rates sometime this year.”

However, it’s important to note that even with this easing in demand, the rental market remains competitive in many areas. Factors such as interest rates, economic conditions, and housing supply constraints can still play a significant role in shaping the market.

Currently, the vacancy rate is sitting at 1.7% (July 2024) in Sydney, with rental supply plummeting over the past year in every capital city (Source: SQM Research).

This means that there are a lot more people looking to rent compared to the supply of properties available, leading to rising rent prices, higher yields and happy investors!

The Trend in Sydney’s Rental Yield

Simon Pressley, head of research at Propertyology, states “We are seeing rental prices all over Australia go through the roof.”

However, Mr. Pressley warned investors against chasing the highest rental yield in Sydney, noting they should consider potential capital growth which could deliver greater returns and holding costs.

Property investment strategist Lloyd Edge states, “if you don’t get a good yield, then you won’t have good cash flow and you’ll get maxed out on negative gearing.” So don’t forget to check your rental yield!

In recent years, Sydney’s gross rental yields have been mostly steady, sticking around 5.5% for units and 2.5% for all houses, according to SQM Research.

Sydney’s Best Rental Yields

As an investor, you’ll want to know about the best Sydney rental yield by suburb.

In Sydney NSW, some of the suburbs with high rental yield for units include (Source: SQM Research)

Granville: 6.3%
Auburn: 6.2%
Lakemba: 6.1%
Fairfield: 6.1%
Wiley Park: 6.1%
Harris Park: 6.1%
Parramatta: 6%
Schofields: 5.9%
Warwick Farm: 5.9%
RockDale: 5.8%

Lakemba, nestled in Sydney’s Inner South West, tops the list for high rental yield investments amidst the city’s soaring property market. the appeal lies in their accessibility to essential amenities like schools and transport hubs, combined with relatively affordable property prices compared to other Sydney locales.

The rental market in these areas flourishes with a diverse range of property types, catering to varied tenant demographics, from families to young professionals. This diversity, alongside a steady demand for rental properties, contributes to the stability and growth potential of rental yields.

Investors eyeing these suburbs can capitalise on the promise of solid returns, backed by both rental income and the prospect of long-term capital appreciation, making Lakemba undisputed leaders in Sydney’s competitive rental landscape.

Liviti’s Top Rental Yield Sydney

Here’s the rundown on Liviti’s Top 3 Projects in Sydney:

The Crescent, Fairfield: 6.1%
Fox Lane Rockdale: 5.8%
Jasmine Schofield Gardens: 5.9%

The Crescent, Fairfield – Top Rental Yield Sydney

The Crescent, Fairfield has an average rental yield of 6.1%, offering luxurious 2 & 3-bedroom apartments. Crescent is centrally located with great proximity to public transport, Parramatta CBD, and open spaces such as Western Sydney Parklands.

Fairfield has an amazing global dining scene, as well as fantastic entertainment options for families.

Crescent Fairfield – Bedroom

Fox Lane , Rockdale – Top Rental Yield Sydney

Fox Lane, Rockdale has an average rental yield of 5.8%, so investors can expect great returns from these premium apartments.

Fox Lane offers exceptional lifestyle benefits with immediate access to a wide range of amenities, making it the perfect choice for both owner-occupiers and investors.

Fox Lane in Rockdale offers a combination of studio, one, two and three-bedroom apartments, providing the perfect option for all lifestyles, from first home buyers to investors, families and downsizers. It also features spacious interiors, with open-plan layouts, generous balconies and quality finishes that tenants can’t help but love.

Fox Lane, Rockdale

Jasmine Schofield Gardens – Top Rental Yield Sydney

Jasmine Schofield Gardens stands out as a premier choice, offering an impressive 5.9% rental yield and an ideal blend of quality, value, and prime location. Situated just minutes from Sydney’s North West business hub, this latest addition to the master-planned Schofield Gardens community is surrounded by green open spaces, creating a fresh and eco-friendly environment.

The Jasmine Apartments are designed with eco-conscious features such as LED lighting, energy-efficient appliances, natural airflow, and thermal windows that mitigate UV impacts. Residents can indulge in a rich lifestyle with convenience and comfort, making Jasmine Schofield Gardens the perfect spot for ultimate relaxation and entertainment.

We hope with all this talk about the rental market, yields and investment properties, you now have a better understanding of how to get the best return on investment and secure the right opportunity.

Looking for some guidance? Contact Liviti Today to kick-start your investment journey and book a consultation!

Frequently Asked Questions (FAQs)

Q: How to calculate rental yield?
A: To calculate rental yield, divide the annual rental income by the property’s value and multiply by 100. For example, if your Sydney rental yield is $30,000 annually on a $600,000 property, the rental yield would be 5%.

Q: What is a good rental yield?
A: A good rental yield varies by location and your goals for that property. In Sydney, a good rental yield is typically around 4-5% for units, which is higher than the average rental yield for houses.

Q: What is rental yield?
A: Rental yield is the annual rental income expressed as a percentage of the property’s value. It’s a key metric to identify the best rental yield suburbs and high yield property investments.

The Ultimate Guide to Finding the Best Rental Yield Australia-Wide in 2022

Daniel Chadrawy on May 13, 2022

For many, being able to buy a property in the Australian suburbs close to one of the major capital cities is “the dream”.

Unfortunately, this dream is quickly followed by the reality of a home loan, interest rates and monthly repayments of a mortgage.

Investors, however, see these properties as future income and assets, rather than liabilities. Savvy investors can very quickly reduce home loans by listing their investment property on the rental market and taking advantage of buying in areas that produce great cash flow and aiming to achieve the best rental yield possible.

An increase in cash flow and profit from a rental property is certainly possible by researching where there is rental demand, where the best rental yields can be found and by obtaining strong knowledge surrounding capital growth.

What is Rental Yield?

Rental yield is the profit an investor receives per year from a property, as a percentage of its purchase or current value.

Essentially, in simple terms, rental yield is a figure that can help a homeowner understand how well their property is performing in the current market by providing valuable information in a simple, easy-to-understand format.

The yield figure can be used to compare the investor’s properties with other properties in the area, as well as being valuable information when it comes time to make decisions.

Generally speaking, a higher rental yield means more potential for rental returns for investors from annual rental income.

There are two different types of rental yields that all investors should be aware of, whether they’re just entering the game or are seasoned veterans.

What Are the Two Types of Rental Yields?

There are two types of rental yields, these being gross rental yields and net rental yields. Both play an important role in helping investors make informed decisions regarding their investment portfolios.

Here’s what you need to know…

Gross Rental Yield

Firstly, let’s discuss gross rental yield.

This relates to the total annual income received from an investment property through rent, before tax.

After the annual rental income before tax is calculated, the gross rental yield is then transformed into a percentage of the property’s purchase cost or current market value.

Net Rental Yield

Now, the second type of rental yield is net rental yield, which is calculated by adding up the total income of a rental property, then taking away expenses or purchase transactions, for example, monthly fees or the charges local agents might tack on for marketing and property management.

As with gross rental yield, the net rental yield is produced as a percentage of the purchase price (or current property value) of the rental property.

How is Rental Yield Calculated?

We know we touched on this briefly in the section above, but here’s a bit more of an extended explanation as to how rental yield calculations should be carried out.

If you’d much prefer to skip over this part and just have someone like an Australian financial services licensee do the math for you, be our guest. Numbers can be super tedious sometimes, though it does often pay to learn about these things yourself. You do you, fam.

How to Calculate Gross Rental Yield

Calculating gross rental yield simply comes down to dividing annual rental income by the value of the property and multiplying that by 100 to get a valid percentage.

Here’s the gross rental yield calculation formula…

Gross rental yield = (annual rental income/property value) x100

And an example…

Let’s say a guy named Mike purchases a property for $800,000. Rental prices for the property have hit an all-time high of $600 per week (lucky Mike!).

As the property owner, in order to figure out the gross yield, Mike would need to multiply the weekly rent figure by 52 to find out the annual rental income ($31,200), then divide that figure by the property purchase value (0.039), then times that figure by 100 for a gross yield percentage of (drumroll, please)…

3.9%

Did you get that? Or have we lost you? Feel free to run your eyes over that one more time, we know it’s a lot to take in on the first read-through.

Now, moving on to our second calculation explanation…

How to Calculate Net Rental Yield

Calculating net yield utilises the same formula as gross yield, but it takes into account any expenses incurred throughout the year that relate to the property.

Here’s the net rental yield calculation formula…

Net rental yield = [(Annual rental income – annual expenses) / total property cost] x 100

And an example (Mike’s back)…

Now, Mike wants to know what the net yield of his rental property is sitting at.

First, he will need to calculate the total of his annual expenses incurred from this particular property investment. Let’s say he’s spent $3500 on things like insurance, repair costs, agent fees and mortgage repayments (among other expenses, but let’s keep it as simple as we can for now).

So, Mike is going to take the $3500 expense total and minus it from his annual rental income amount ($27,700), then he will divide that amount by the total property cost (0.035), and finally, multiply that figure by 100 for a net yield percentage of…

3.5%

We get that this stuff can be hard to wrap your head around if you’re a first-time investor, so please don’t hesitate to reach out to us directly and ask to speak with one of our super friendly (and highly experienced) property experts. They know exactly how you’re feeling…after all, we all have to start somewhere, right?

What is The Importance of Understanding Rental Yield?

Understanding rental yield can help investors gain a better understanding of cash flow, work on an investment strategy for the future, figure out whether they may be able to afford a particular home loan amount on a new property, consider their personal objectives and whether the property is working well for them and see how their home is standing in relation to the rest of the property market.

In short, understanding rental yield can help an investor determine both affordable property prices and those that may be out of reach, given their personal circumstances, among an array of other helpful tidbits.

What Other Factors Should Be Considered Alongside Rental Yield to Provide Property Insights?

Vacancy rates

The statistic used to determine the number of vacant properties on the market at one time is known as the vacancy rate. The vacancy rate is normally calculated as a percentage, by dividing the total number of properties currently for rent by the number of properties currently listed.

Knowing the vacancy rate in a particular area is a fantastic way to compare the viability of purchasing a property there and can assist greatly in working out the best rental yield suburbs for consideration.

Generally, the lower the vacancy rate, the better chance the suburb will produce high yield properties. Of course, this isn’t always the case and proper care should be taken to perform thorough research before purchasing a property.

Growth pattern trends and insights

Studying growth patterns and other trends can assist an investor in determining whether the median rental yield, interest rates and home loan options of a particular area, or the entire market, at any given time, is going to provide strong capital growth, best rental yields and other favourable outcomes.

By studying statistics like the median weekly rent and median sale prices, profitable locations can be ascertained; median rental yield can often be determined as an approximation by using these two figures (again, not always, but often).

It is important to note that one issue with using median rental yield to determine potential profit is that property prices in the area may have increased over time after the initial purchase, therefore the investor’s rental yield may end up lower than the median for the area.

Overall, it’s safe to say that studying the median prices in capital cities, regional areas and city suburbs, alongside other information and statistics can assist both current and future investors in successfully growing their property portfolios.

What is a Good Gross Rental Yield?

It is honestly quite hard to accurately define what a good gross rental yield is. If anyone tells you they know exactly what yield is the best for you (or the best in general)…tell them, in no uncertain terms, to cut the crap.

Sure, we can speculate. A lot of property experts will say that a rental yield of around 2-3% higher than the current variable mortgage rate is good, or a percentage of 5-6% higher is great. But that’s all it is…speculation.

The truth is that a good rental yield depends entirely on the circumstances of the buyer. Things like…

Their current financial situation and whether they have a steady stream of income.
Specifics of loans including loan term, loan amount, credit provider and other options available to them regarding home loans.
What they define as affordable property prices.
Their goals when it comes to entering the rental market as a property investor and where they want to take their portfolio.
And a whole lot more!

The circumstances of the purchase come into play as well. For example, a property’s rental yield at present may be lower than average but the median property values of the area may be on the rise – which can help to increase the rental yield over time.

Suffice to say, there’s no blanket ‘best yield figure’. It’s all a matter of circumstance.

What will happen to Rental Yields in The Future?

See above. Much like the issue of nobody knowing exactly what a good rental yield is, nobody has a crystal ball that can tell them exactly what will happen to rental yields in the future.

Sure, a credit provider, home loan expert or real estate professional may be able to make educated guesses, but the only certainty is uncertainty, we’re afraid.

Regardless, here are a few ideas and thoughts that we’ve heard through a trusted source recently…

“Post-COVID, growth rates will moderate the most in Melbourne, Darwin, and Sydney in the coming years.”

“Capital cities, and even more so regional locations, have the potential for between 20 to 50% capital growth over the next two to three years.”

“Propertyology is forecasting dollar-value rental incomes on standard houses to rise by as much as $10,000 in the 2022 calendar year.”

“International borders opening will definitely increase rental demand as that equates to more people looking for housing.”

Things certainly seem to be looking up, so now is the perfect time to deal directly with our team of Liviti property experts when it comes to starting or expanding your investment portfolio.

We can help you find a relevant credit provider and give you solid advice regarding the rental market, home loans and more, as well as send you in the right direction towards a trusted home loan product provider’s web site.

Is My Rental Income Taxable?

In short – yes *cue boos*.

An investor will be taxed (through capital gains tax) on the amount they profit from their rental investment property.

Rental income is defined as the total amount of rent or payments received from a rented property and must be included on the investor’s tax return.

There is a silver lining, though. Often investors will be eligible to apply for exemptions, discounts or concessions which may result in a cut down portion of the payable capital gains tax (CGT) amount. CGT concessions are definitely worth looking into.

What Are the Risks of Buying an Investment Property in High-Yield Suburbs?

There are always risks involved in purchasing investment properties.

Here are a couple that relate to buying in high-yield suburbs that may or may not affect you, depending on the research you conduct to invest wisely and the individual circumstances of the property itself…

Low capital growth

Low capital growth can be extremely detrimental to those investing in property.

Low growth means, in simple terms, that the property value is increasing at a slow rate when compared to the original purchase price.

Though the property may be experiencing high yield, overall growth can be heavily affected by supply and demand in the area with growth tending to be lower in areas with high supply and low demand.

High vacancy rates

Vacancy rates refer to the number of rental properties on the market which are unoccupied in a particular area.

When the vacancy rate is high, it provides more choices to potential tenants, at times putting pressure on rental prices for property owners.

It is often suggested that buyers invest in areas that have a wide variety when it comes to the demographic of possible renters, for example, the suburbs on the outskirts of a capital city and semi-regional areas (but not too regional).

Australian Suburbs with High Rental Yield in Recent Years

A 2020 article printed recent data released by CoreLogic, outlining the following areas as the best rental yield suburbs in Australia…

Queensland’s Gold Coast region, Broken Hill, the Northern Territory, and South Australia all make the cut, but it seems that Western Australia takes the cake in this battle to determine the highest rental yield suburbs in Oz!

It’s worth noting that, within the same study, the Central Coast region of New South Wales had quite a few areas with a relatively high rental yields that missed a mention in the table above.

Blue Haven, Charmhaven, and Watanobbi had rental yield values of 4.7%, 4.5% and 4.4% respectively, and all maintained a median weekly rent between $430 and $470.

Conclusion

All in all, our main message here is…

Don’t go pulling your hair out trying to figure out the exact numbers when it comes to the best median rental yield for an area, specific rental yield for your property or the best rental yield in general.

Do your research, deal directly with the experts and take all other relevant factors into account when it comes to property investment, rather than focusing solely on the highest rental yield stats.

If you’d like to take a look at our available properties for purchase, feel free to do so. Any questions, call our office on (02) 9056 4311 or contact us here and we’ll be happy to help.

Buying Off the Plan Properties: 7 Powerful Concessions to Save Big on Stamp Duty

Daniel Chadrawy on May 6, 2022

When it comes to off the plan concession offerings, quite a few benefits are available to purchasers who qualify for them, making them an attractive opportunity for all kinds of buyers.

One of the most popular off the plan concession opportunities involves acquiring a stamp duty concession. Generally, these concessions will benefit first homeowners and purchasers who intend on living in the home.

What Is An Off The Plan Transaction?

Buying a property off the plan means you are entering into a contract for property purchase before the construction of the property has commenced or while construction is in progress.

An off the plan transaction could refer to land that is going to be subdivided, an apartment, a townhouse, or a range of other dwelling types. Land, in itself, does not qualify.

Off The Plan Stamp Duty Concessions

Taking advantage of available benefits is a huge incentive for home buyers, especially ones that allow a reduction to the upfront fees required to secure a home.

What Is Stamp Duty?

Also known as transfer duty, this is one of the bigger costs to be accounted for. It is the tax that the Government imposes when you purchase a property at a particular value, or when the ownership is transferred. Unlike land tax, you only pay duty once.

It is calculated according to the total dutiable value of the property.

Simply match up the purchase price of the property you’re considering with the dutiable value information in the table below for NSW rates on owner-occupied or investment purchases. It’s easy enough to find information for other states via Google.

What Off The Plan Concession Is Available With Stamp Duty?

It’s no surprise that Australian stamp duty concession availability and eligibility vary between states.

In NSW, this concession works by pushing the duty payment due date 12 months into the future (ahead of the standard 3-month timeframe), or until the property has been officially handed over, whichever comes first.

In the ACT, if your contract was exchanged between 1 July 2021 and 31 March 2022, no duty applies to off the-plan unit owner-occupier purchases up to $500,000. This was then increased to purchases up to $600,000 as of April 2022.

There are quite a few first home owner concession opportunities including the First Home Buyer Assistance Scheme in NSW which may apply according to the dutiable value of off-the-plan properties.

Honestly, we’re chuffed just thinking of all the smashed Avo on toast those savings could buy!

Who Is Eligible For Off-The-Plan Concessions?

In NSW, in order to be eligible for stamp duty concession, the off-the-plan property you intend to purchase must be a residential property that at least one purchaser intends to live in as a principal place of residence for 6 months continuously, within 12 months of purchasing the home.

You must also be an Australian citizen OR a New Zealand citizen with a subclass 444 visa having lived in Australia for over 200 days in the last 12 months OR a permanent resident who has lived in Australia for just as long to be eligible.

If any residence requirement is not met, purchasers may need to pay a penalty tax.

How to Apply for Off-The-Plan Stamp Duty Concession

Currently, the State Revenue Office manages concession applications relating to first home buyer off-the-plan purchases in NSW.

Here’s your step-by-step action plan for applying…

Do your own thorough research before applying
Confirm your Australian citizenship status and other personal conditions meet the application requirements
Complete and lodge your application accurately and with supporting evidence

You can find further information and access the application form here.

New Requirements For Off-The-Plan Contracts To Know Before Your Contract Date

Prior to the date of the contract, check out the new requirements put into place in NSW from December 2019.

These new laws were added to create more disclosure obligations on vendors so that purchasers have more transparency throughout the buying process.

As a first home buyer, purchasing a residential property, like a new apartment, off-the-plan can offer some pretty sweet benefits, but please do keep in mind that suitability will always depend upon the individual circumstances of the purchaser.

Contact one of our expert property consultants at Liviti to help answer any of your questions or take a look at our latest off-the-plan properties available for purchase.

Happy house hunting!

Is stamp duty payable on off the plan purchases in NSW?

It certainly is! Unless you meet any of the concession options mentioned in this article, your stamp duty payment will be due within 3 months of the completion of the transaction.

Why The Rental Market Is Exciting Property Investors

Daniel Chadrawy on April 27, 2022

Over the course of the pandemic, the rental property market has seen its ups and downs. However, property investors are buzzing with confidence and excitement that activity will rise again despite the drops in rental yield.

What is Rental Yield, and Why is everyone telling me it’s important?

Gross rental yield is your rental income as a percentage of your properties’ value.

You calculate it like this:

Gross rental yield = (Annual rental income/Property value) x 100

Along with vacancy rates, rental yield is one of the two most important factors that investors consider before purchasing a property as it creates the ideal investment environment.

This includes:

An area with a high and/or increasing rental yield
A steady or declining vacancy rate

High rental returns and quick occupancy can result in positive cash flow.

Gross Rental Yields in 2021

According to CoreLogic, 2021 saw annual rental value growth rise 11.8% to its highest point since 2008. However, the gross rental yield fell across Australia due to the COVID-19 pandemic and the rental supply constraints.

So Why Are They Falling?

Supply and demand is a very popular phrase in the property market and relies heavily on each other to influence any changes it undergoes. The pandemic hit the rental market hard due to the undersupply of property for high demand, resulting in purchase prices skyrocketing.

Since there is a direct relationship between rental income and property value, when calculating rental yield, an increase in the median property sale price will result in an equal decrease in rental yield.

(Source: CoreLogic)

Is there any opportunity for me as an investor?

PRD chief economist Dr Diaswati Mardiasmo says falling rental yields aren’t necessarily bad news for investors.

Multiple other factors can contribute to market trends and create great property investment opportunities. These including:

Balance of local supply and demand: Rising rents, low or falling vacancy rates and a low average number of days on the market indicates a strong demand for rentals. This in turn, leads to higher rental returns and faster occupancy for better cash flow.
Planned developments for the area: Such growth drivers improve the livability providing the potential opportunity to attract more people to the area, leading to strong rental demand and future capital growth.
Slowing property price growth: This is good news for all property investors. As property price growth is now slowing down and rental rates are rising due to the return of overseas arrivals, rental yields are likely to rise again this year

Yes! These factors indicate a strong outlook for property investors, resulting in a recent boost in market activity.

Rental Yields are back on the rise!!

The start of the new year alone is already showing a promising shift in these trends across all of the capital cities, according to PopTrack economist Angus Moore.

“In Melbourne and Sydney, we saw advertised rents fall for much of the first part of the pandemic,” Mr Moore said.

“That’s starting to reverse now, and rents are growing in these cities as well.”

According to realestate.com.au PropTrack data, the median advertised rent in Australia is $450 per week, a 4.5% increase over the previous 6 months as the rental market tightens and renters face limited options.

These rising rents will help support yields for property investors, particularly since property prices aren’t expected to rise as quickly this year, Mr Moore noted.

Adding to the rental figures, Corelogic reports show the growth in rent values (0.8%) has outpaced property values (0.6%), leading to gross rental yields stabilising at 3.21% over February 2022 – the first time in 17 months that gross rent yields did not decline.

Here, you might wonder what could be the reason for this. Well, this was because of the pandemic restrictions easing and the national & state borders opening up again.

If these conditions remain constant throughout the year, gross rental property yield is expected to increase due to the inflow of international students, permanent residents and Australian citizens allowed back into the country.

Usually, most overseas immigrants experience a ‘tenure cycle’ that begins with renting and shared accommodation when they first enter a new country to reside.

This means that the increased number of people arriving in Australia will most likely rent first, and due to this greater demand, the property rental yield is expected to rise in the coming year, a big HOORAY here!

Increasingly Active Investors

Over the year of 2021, many investors exited the market, selling their property to take advantage of the strong house price growth.

But, and this is a huge but, this trend has reversed in 2022, with investors becoming increasingly active in the market.

We observed a comeback of investors since COVID-19, “committing to $10.3 billion in investor loans as of December 2021, a rise of nearly 75% in the past 12 months”, according to Dr Mardiasmo.

During this time, the proportion of investor finance also increased, with total housing loan commitments rising from 23% in December 2020 to 32% in December 2021.

In addition, some investors have shown regret when opting out of the market too soon.

Ryan Khorianto, a property investor, has two investment properties in Sydney, one in Lidcombe that he purchased five years ago and one in Leppington that he purchased several months ago and his own home.

Mr Khorianto sold another investment property in western Sydney in the mid-2010s, and while he made a $200,000 profit, he said it was a good lesson to hold onto the property for the long term.

He believes it would have increased in value during the most recent boom. Would you do the same thing if you were Ryan? Would you hold on?

Now Is A Great Time To Invest!

Properties for sale across Australia are flying off the shelves *literally*, as current home buyers are snapping up homes fast to lock in low mortgage rates before interest rates rise in the coming months.

So now might be the perfect time to secure your investment property.

Give us a call at (02) 9056 4311 or enquire here to speak with one of our investment strategists to find out how you can start building wealth through property today.