Investors across Australia experienced the benefit of increased rental income over 2011. In the last quarter of 2011 median weekly rents increased in all capital cities, with the exception of Hobart. Rental income from apartments increased slightly more than from houses with a preference for units close to central business districts.
"Conditions reflect the low level of construction, with too many people and not enough housing in city centres" said Mr Wilson, Senior Economist at Australian Property Monitors. Competition for properties among tenants pushes up rental yield while ensuring that property investors don't experience vacancies. The high level of demand for rental property is expected to continue with the Australian Bureau of Statistics forecasting rental increases of 6% per year.
Over 2011, income from units increased most in Perth (6.1%), Brisbane (5.8%) and Canberra (4.8%). The greatest increases for houses were in Canberra (6.4%), Perth (5.3%) and Sydney (4.2%).
Australia's most expensive median rents are in Darwin ($550 per week), Sydney and Canberra ($500 per week). The cheapest rents are in Hobart ($320 per week).
Rent from a median priced investment property can increase income by around $30,000 per year. This amount is even greater for some properties. Average annual rental income in Brisbane and Melbourne is just under $20,000 per year.
This income can help to service the investment loan and to maintain a quality lifestyle during times when family income normally comes under pressure, such as maternity leave or retirement.
When rental income is combined with taxation benefits, many investors have very minimal out-of-pocket expense when purchasing their investment property.
Talk to a ParkTrent professional today about how your tenants can help purchase your investment property.
Talk to a ParkTrent Property Investment Professional today
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