Capital city rents on the rise

Property markets around Australia have finally felt the effects of the RBA's (more-so the banks) successive interest rate rises and economic unpredictability, with virtually no growth in housing median values during the three months to the end of October.
However our capital city populations are still increasing at the highest rates in the Western world - over, 150,000 new Australian households are formed and each of them needs a home.
 

Residex figures show that median rents rose in nearly 75% of our capital suburbs, many increasing by up to 25% and some as high as 33% or more. During the last three months, over 50% of our capital city suburbs experienced rent increases, and they occurred in all capital cities.

We are clearly moving into an extended period of rent increases and for investors, this heralds the return of positive gearing - when your rental income is greater than the cost of your loan, and the tenant is paying it off for you.
 

Residex has just release the "best rents" report, reducing over 10,000 suburbs and towns throughout Australia to those with current rental yields over 5%. Buy it now here
 

Here are the results investors obtained from previous Best Rent Reports:*

• 80% of our 100 featured suburbs had a total return of over 14% per annum!
• 50% returned more than 23% per annum!

Source: Residex 2010 Newsletter