1st time using this site please help, Could some advise me of the current returns on rental properties in eastern subs of Melbourne or please advise me of a site in Oz where this info is avaliable,I am hearing that investors are coming back to market because of "soaring rental prices".
Hi paddyphil,
welcome to the forum.While rental yields are on the rise, they are not "soaring". This is a media term, and you've never known the media to use sensationalism to get ratings and sell papers have you?
You will, of course find local areas that will go up quicker than others, but generally it is a slow, but steady rise right now. (yay!)
Australian Property Investor Magazine lists average rents, house and apartment sales etc in each state every month, you can buy reports from Residex, or you can look on realestate.com.au at the rental properties to guage prices for the various property types.
Or you can simply ring all the agents in the areas you are interested in and ask for info on vacancy rates, rent yields etc.Without checking, I think average rental yeilds in Eastern subs of Melb are around 4-5%. Pretty hopeless. If anyone tells you this is "good for the area" they are an idiot, and probably an agent, or someone else trying to flog you a property. With finance at 7.5% approx at the moment, this is a terrible yield.
The only bonus is you might get some cap growth in the near future, but you need to find the right neighborhood.
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