I just came across a new report from CoreLogic that says that residential rents in Sydney are at their lowest level on record – averaging just 3.1 per cent in April 2016.
Low rental returns can be a sign that property investors are relying heavily on negative gearing to offset their cash flow losses against their taxable income.
There is another easy way to improve cash flow that has nothing to do with negative gearing. Yet according to statistics, a stunning 80% of people investing in apartments are failing to use it.
Media presents contrasting signals about our economy in general and our real estate in particular. While not all we hear is positive news, there are quite a few bright reports that keep coming our way. On the bright side, we have a stable government, a more than decent banking system and an economy that can make many developed nations jealous.
One question buyer’s agents have to answer rather frequently is, “When is the best time to buy?” Currently, interest rates are low (they have been for a long time now) and banks are competing fiercely to grab buyer attention. This makes it a good time to go for investors and first home buyers (not to mention the next home buyers).
In an article for the Property Update, Michael Yardney focuses on 10 golden commandments or rules of property investment.
There are reliable stats to confirm that many young faces are entering the world of real estate. Compared to any other time in the past, the landscape of property market is now dotted with more Gen X and Gen Y investors. What they lack in experience they attempt to make up for with enthusiasm. Still, there are traps and lures aplenty in the real estate arena, and it is important that they know how to avoid them, or they will be committing a lot of fatal property market mistakes.
