Signs are building that investment in property is set to bounce back after a year in the doldrums, according to a news story by Robert Harley in The Weekend Australian Financial Review.
Quoting prominent experts and organisations, the report said the country's one million or so investors were now re-examining the essentials of property, and discovering they have 'rarely looked better.'
It added:
- Rising rents and falling interest rates have boosted returns
- Values have remained 'remarkably' stable
- The risk of house price falls is lessening and
- Decreases in superannuation concessional thresholds will push people on higher taxable incomes towards more deductible investments such as property.
RP Data national research director Tim Lawless reportedly said rental increases of the last two years had provided investors with their best gross rental yields for a long time.
BIS Shrapnel managing director Robert Mellor said he expected investors to be back into property markets from late 2009.
The Westpac-Melbourne Institute consumer confidence index found that more than 65% of consumers expected house prices to stabilise or rise in the next month.
Australian Property Monitors' Matthew Bell reportedly said there would still be upward pressure on rents because demand is high and vacancies are at historic lows.
The story quoted Macquarie Research as saying housing had always been the sector that led Australian out of recession, with large mortgage rate falls the trigger.
This time appeared to be no different, it added.
Publication: The Australian Weekly Financial Review Date: May 30-31, 2009 Author: Robert Harley
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