Rental income makes an important contribution to property investment A typical investment is comprised of two money-making components: income and capital. In property, this reflects rent and value. Although both are important, the strongest gains are usually made on growth in value rather than growth in rental income. Rental income makes an important contribution…
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Knowing the Cycle: Interest Rates and Income There is a relationship between rental vacancy rates and the Reserve Bank ‘cash rate’, which has a strong influence on interest rates paid on mortgages. Rental income, more commonly referred to as rental yield, also has a relationship with the cash rate. As it happens, the relationship is…
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RPData Research The Reserve Bank released their bi-annual Financial Stability Review (FSR) earlier today. From a housing market perspective it makes for very interesting reading with the RBA noting that ‘the composition of housing and mortgage markets is becoming unbalanced, with new lending to investors being out of proportion to rental housing’s share of the…
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