With rising interest rates, record high prices for real estate and Covid-19 legislation to protect Tenants, are investment properties still a good asset to have in 2023?
Our Head of Property Management, Kim Moncrieff, answers the tricky questions for you:
"Overall, I feel that Australia has strong employment and growth, a rising population and a shortage of homes so there are some good opportunities for investors in 2023 and beyond.
Saving a deposit and buying your first home is a dream held by many Australians, but this doesn't have to be one that you buy to move into.
One alternative is to buy an investment property. This can help you get a foot on the property ladder while you continue to rent or live at home with your parents.
A variety of factors must be considered here including your own personal circumstances, the type of property you're thinking about buying (investment-grade properties) and the various finance options available to you.
For those who already have an investment property - even if the investment property is negatively geared, if you can afford to cover the shortfall in rent/home loan repayments you should hold on to it. Often making the most of the eligible tax deductions are reason enough to keep an investment property."
How much have rental prices increased and vacancy rates lowered over the last 10 years?
In 2012, the average rental price for a house in Devonport was $255.00 p/w, fast forward to 2022, the average rental price for the same house was $380.00 p/w.
The average rental price for unit in Devonport was $200.00 p/w in 2012 and $300.00 p/w in 2022.
Vacancy rates for the North West Coast were at 5.2% in 2012 and 1.2% in 2022.
*data is approximate and obtained from REIT and is accurate to the best of our knowledge.