Rental revenue continues to rise across Australia, giving fresh impetus to the property investment scene.
Whether you’re thinking about growing your portfolio or starting out as an investor, the trend in rents indicates that great opportunities may be available.
Rental incomes are being supercharged by a post-Covid surge in overseas migrants and international students, according to the latest data release from industry researcher CoreLogic.
Their arrival has put pressure on the number of rental properties available, and this supply-and-demand equation is pushing rentals higher in every capital.
CoreLogic’s national dwelling rental index says rents are 11.7% higher than 12 months ago. That is a new record, underpinned by demand for capital city units.
Over the past three months to April, investor incomes are up 2.8%.
The total supply of rental properties in the capital cities was 20.9% below the level recorded 12 months ago. It’s down 39.8% from the five-year average.
Pressure is easing in the regions, where rents rose 1.3% over the past three months and 6% over the year to April.
These recommendations may help if you have plans to extend or start a rental property portfolio.
Research
Investors must understand local real estate trends, property values, rental demand and potential for growth in the area. Positive economic indicators, such as job growth, infrastructure development and population expansion, are also essential factors.
Set goals
You should be clear on why you want to be an investor. Are you seeking long-term capital appreciation, rental income, or a combination?
Use professionals
You should always consult an accountant or qualified financial advisor, especially if you’re about to start a portfolio. You’ll need to navigate a myriad of rules and regulations to ensure your investment is a success.
Diversity rules
In the long term, invest in a variety of locations and styles of properties. Diversification protects you against local market fluctuations.