Proximity to the amenities that today’s society demands is a far greater driver than purchasing an established home in an undesirable location. Today property buyers have many options when comparing properties on offer ranging from CBD based to rural areas from high density to low density living and from small studio apartments to architecturally designed…
Read More
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…
Read More
Knowing the Cycle: Supply and Demand Recent articles in this newsletter have focused on the mechanics of the property market and the importance of ‘knowing the cycle’. A recurring theme in the discussion is the message that property is an asset that must be held long term, through fluctuations in interest and vacancy rates and…
Read More
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…
Read More