RCR Finance Bulletin # 13 - Wednesday 30th July, 2008

Rents Skyrocket Across The Country

An article crossed my desk which I thought was very important to pass on to you (also confirmed by a news article on Melbourne's Channel 9 and 10 news on Thursday 24/7/08).........................

Rents soared over the 12 months to June '08 with double digit growth recorded in five out of eight capitals.

A recent Australian Property Monitors (APM) report showed that the cost of rents increased most dramatically in Perth, where unit rents surged by 25% and house rents by 17%.

Sydney and Melbourne also saw unit rents rise by 15%, and 17% for houses.

Rental yields remain best in Darwin and Canberra where rents are high compared to property values.

Michael McNamara, APM general manager, said high mortgage rates were the obvious catalyst for the rent rises.

He said that "on one hand landlords are trying to offset increased costs and on the other hand interest rates deter renters from making the shift into home ownership".

Also, follow this link to a very interesting article about ANZ economists view about the future of the Australian property market....this is seriously good stuff

http://www.moneyreview.net.au/news/housing-news/home-prices-to-explode-anz-bank-predicts/

Wise investors will always recognise that the "early bird catches the worm" and might want to very seriously consider getting in early to take advantage of this projected phenomenon.

If you are seriously considering the merits of investing in your first or seventeenth property, then please feel free to give us a call at RCR Finance Pty Ltd.