RCR Finance Bulletin # 11 - Friday, June 20th, 2008
BREAKING NEWS - Population Explosion To Drive Rents Up
Record high national population growth is expected to fuel strong rental increases in most capital cities across Australia.
According to BIS Shrapnel’s Property Prospects 2008 to 2011 report issued last week, record net migration inflows have boosted Australia’s national population growth to 1.5% which is expected to push average rental costs higher as a result.
The report stated that "the average cost of renting is set to rise much more than the cost of buying in 2008/09 and 2009/10 due to the under-supply of new housing".
BIS Shrapnel are confident that the increase in rentals, combined with improved credit conditions, would drive a property price recovery in most capital cities during 2009/10.
We believe that this may prove to be a boon for existing or new property investors because historically as rents rise, so do capital values, and thus, net personal wealth. In addition, as rents rise, the out of pocket cost of investment property ownership gradually reduces (assuming of course that interest rates don't go the wrong way). It appears quite evident that economists predict property values will continue to increase on the back of higher rents driven by low supply and strong demand.
If you are considering investing in property as a part of your wealth creation strategy and need some finance advice, or would like an obligation free "Sanity Check" of your existing finance structure, please feel free to give us a call. You will find yourself talking to financiers who are actual property investors as well.
DISCLAIMER...The information contained within this Newsletter / Bulletin is of a general nature only and is not intended to be relied upon or to be construed as the giving of professional financial, legal or economic advice. RCR Finance Pty Ltd makes no warranties or representations whatsoever regarding the quality, accuracy, or otherwise of any material contained within this Newsletter / Bulletin. RCR Finance Pty Ltd will not be held liable to readers or users of the material contained within this Newsletter / Bulletin for any loss or damage however caused resulting from the use of the material. All readers or users are advised to seek their own independent professional financial, legal or economic advice.
