The tight rental market currently being experienced in most of Australia's capital cities is bringing with it a renewed confidence in property investment.

According to the Real Estate Institute of Australia's (REIA) 2007 Real Estate Market Outlook, demand for rental properties is outstripping supply in every capital city in Australia. The weighted Australian average vacancy rate of 1.7 per cent is well below the industry vacancy rate benchmark of 3.0 per cent.

The REIA also reports that property investment has produced excellent returns averaged annually over five and ten years, ranging between 7.5 per cent and 25.5 per cent across Australia.

These factors combined have seen property investment once again start to take on the glow of rosy returns.

Whether it’s a desire for a regular and steady income stream, the associated tax benefits or that other investment options are not as enticing, property investment is proving, once again, an attractive proposition.