Agents are reporting that tenants are fighting over rental properties, and in some cases offering more than what the property has been advertised for.
This is great news for investors because finally the figures are starting to stack up in regards to healthier returns. What we have also noticed is that there are many investors coming from Queensland and Victoria wanting to buy into Sydney because they feel as though they will get more capital growth over the next five years here, rather than in their home city.
Louis Christopher from Home Price Guide said this week that he is predicting that rents could increase by 15% per annum. At that rate returns could start to come back at 6 and 7 % if property prices stayed where they are, which unfortunately won't be the case.
I think with the vendor tax gone and rents increasing, I do believe this might be the perfect time for the property investor to strike. Another promising factor is when the share market has a downturn, people return to property.
