The last couple of weeks I have been talking frequently about the renewed confidence in the real estate market, and that at Century 21 we are seeing the return of many investors to the market. The Real Estate Institute of Australia is also witnessing the same, and has recently issued a statement regarding the increasing evidence that the property market is again proving attractive for investors.
What's proving most attractive to these investors is the high yields and low interest rates currently available, which provides the ability for many to earn a positive return. Ongoing low rental vacancies means it's a great time to be an investor if you can afford to be. Since late last year the first home buyers have been dominating the property market since late last year, many to cease being renters themselves, which isn't surprising when you considering that average loan repayments are actually cheaper than median rents in Canberra, Hobart and Darwin. Despite this domination, there are signs that the first home buyers are now not the only active group in the market.
The seasonally adjusted value of finance commitments for investment housing in April saw an increase for the second consecutive month, the first time this has happened since 2007. The good news for investors, on top of the low interest rates and high yields, is that based on median house prices and rents, investors in the majority of our capital cities can expect a positive return. I've said it before, I'll say it again, and I'll no doubt say it in future, but if you can afford to be investing in real estate, now is certainly a good time to be doing so. As always, if you have any questions about property, talk to your local Century 21 agent – the expert in your area.