Affordable rents please investors
IT'S a win-win situation for renters and property investors at the moment.
For the last 12 months the rental market has remained stable meaning investors like Rockhampton's Melinda Peterson can receive a solid rental return while at the same time renters aren't forking out big dollars.
According to the Real Estate Institute of Queensland the average rent paid in North Rockhampton for the June quarter was $280 per week.
This was the same amount for the March quarter; however rental returns have increased by 0.4% to 5.1%.
Miss Peterson owns three properties, two of which she rents out - one in Gladstone and one in Rockhampton.
Her Rockhampton rental property sees a $250 per week income, but she said this was a very affordable price and judging by the market she could ask for more.
“My properties always have more than one applicant and were vacant for less than 24 hours,” she said.
Miss Peterson, 25, who also works as a real estate agent for Think Real Estate, said purchasing properties is a way for her to provide a solid future and increase capital growth.
REIQ Rockhampton zone chair Terry Molloy said there hadn't been a lot of movement in the rental market.
He said naturally at the moment it was better for renters.
“If interest rates go up the property owners will have to chase it to maintain their margin for a return,” Mr Molloy said.
“But this latest interest rate change will have no effect.”
Mr Molloy said the real estate market was definitely a lot better than the same quarter last year.
“We're looking to a bright future,” he said.
Currently around Rockhampton there is about a 3% vacancy rate.