As seasoned advisors, we bring you the latest market developments to help you make informed investment decisions. So let's dive into the current trends of property investors in the current marketplace.
Key Highlights:
Property investors account for 34% of mortgage demand, reaching the long-term average.
NSW is witnessing heightened investor interest, comprising 38% of new mortgage lending across the state.
In contrast, Tasmania and Western Australia have lower investment activity, but Perth boasts the highest gross rental yields among state capitals at 4.9%, making it an attractive location for potential gains.
Despite the impressive fundamentals and resilient home values in Perth, it's surprising to see lower investor activity in this market. Factors like herd mentality and volatile housing values may be influencing investment decisions.
On the other hand, NSW, especially Sydney, attracts investors despite lower rental yields and affordability challenges. This highlights diverse investor objectives, with some focusing on capital gains, while others prioritize maximizing cashflow.
For the best of both worlds, consider exploring Perth and southeast Queensland markets. These regions offer higher yield profiles and promising capital gain prospects, backed by strong fundamentals like lower buy-in prices and rapid population growth.
At our property advisory business, we keep a close eye on market dynamics to guide you toward rewarding investment opportunities.
If keen to chat about your next investment, reach out.
Donie Collins
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