RCR Finance Bulletin # 8 - 15th April, 2008

Rents to Double in Four Years

Australian Property Monitors’ Quarterly Rental Series recently revealed that median asking rents rose by double digits in all capital cities over the last 12 months, .

Melbourne weekly rents grew the most, rising by 17% for houses and 15% for units. Perth wasn’t far behind with house and unit rents rising by 14%.

The cost of renting is also set to increase further – APM has forecasted a rise in rents of 50% over the next four years.

APM attributed the continuing rise in rental yields to critical supply shortages, strong migration patterns and the rising cost of home ownership.

APM's General Manager Michael McNamara said................“given the lag from approval to completion in building construction, the flow-on effects are likely to continue throughout the rest of this decade and beyond” .

We consider it would be fair to glean from this that those who can afford home or investment property ownership sooner rather than later will be held in good stead over the coming few years.

If financing a home or investment property is something you are considering, please feel free to give the team at RCR Finance a call.

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.