Improving rental yield involves maximizing the income generated from a rental property while minimizing costs. Before assessing some opportunities and tips to improve rental yield, let's explain what it is first. What is Rental Yield? Rental yield is a key metric used to measure the return on investment (ROI) for a rental property. It represents the amount of income generated from the property as a...
What is contributing to the high cost of rent in Australia. In this market insight, we share several factors that contribute to the high cost of rent in Australia. Supply and Demand Imbalance: Many major cities in Australia, such as Sydney, Melbourne, and Brisbane, face a significant imbalance between housing supply and demand. Population growth, urbanization trends, and limited land availability...
Understanding the impact of interest rate rises is crucial for property buyers or anyone with a mortgage. Here's what rising interest rates mean for you: 1. Higher Monthly Mortgage Payments How It Affects You: When interest rates rise, your lender will typically increase the interest charged on your loan, leading to higher monthly payments. If you have a variable-rate mortgage, your payments will...
The modern butler pantry. Who doesn’t love a walk-in cupboard! A traditional home feature that is always in hot demand. This is happening in both brand-new properties, remodels or renovations. Traditionally, a butler’s pantry was a narrow room adjacent to the main kitchen used to store delicate prestigious kitchenware that was often locked up. The name ‘butler pantry’ was initially derived...
Do I focus on capital growth or rental income? When deciding between focusing on capital growth or rental income for an investment property, it really depends on your financial goals, risk tolerance, and investment strategy. Here's a breakdown to help you decide: Capital Growth Objective: Increase the property's value over time. Strategy: Typically involves buying in areas with high potential...
The popularity of house and land packages. A house and land package is a real estate offering where you buy both a piece of land and a new home that is either already built or will be constructed on that land. This type of package is often marketed by builders or developers and offers several advantages: Convenience: It simplifies the home-buying process by bundling the purchase of land and the...
Rental Market Snapshot: According to the The Real Estate Institute of Victoria (REIV) :- The proportion of vacant properties in metropolitan Melbourne stands at approx. 2.2% 30 June 2024. This has remained steady for the first six months of 2024 where it was at 2.3% ending 31 December 2023. The proportion of vacant properties in regional Victoria stands at approx. 2.1% as at 30 June 2024. This has...
The relationship between rent and inflation is typically intertwined, as changes in inflation can influence rental prices, and rental prices can also contribute to inflation. Here’s how they are connected: Inflation Impact on Rent: Cost Push Inflation: When overall prices rise due to factors like increased production costs (e.g., raw materials, wages), landlords may raise rents to cover higher...
What does a property median price mean? The property median price refers to the middle value of a list of property prices arranged in ascending or descending order. It is a statistical measure used to represent the typical or average price of properties within a specific area or market segment. Property median prices, here’s what it signifies: Central Tendency: The median price represents the...
Why should you invest in Victoria? Macro factors that drive fluctuations in the economy also influence the property market. While property markets are cyclical, quality residential properties in good locations held for the medium to long term, have historically performed and remain one of the most robust and popular investment options. Experienced investors understand that downturns are often...