Got your attention?
The Reserve Bank said in it's statement to the Productivity Commission Inquiry on First Home Ownership that people investing in Australian residential property were continuing to do so despite gross yields much worse than the comparable yields for local industrial, commercial and retail property.
The residential yields are also well below the yields achievable overseas in residential property.
Doesn't this mean that anyone still investing in the Australian residential property is making a rather poor decision?
What do you think?
Cheers,
Aceyducey
The Reserve Bank said in it's statement to the Productivity Commission Inquiry on First Home Ownership that people investing in Australian residential property were continuing to do so despite gross yields much worse than the comparable yields for local industrial, commercial and retail property.
The residential yields are also well below the yields achievable overseas in residential property.
Doesn't this mean that anyone still investing in the Australian residential property is making a rather poor decision?
REF: http://www.rba.gov.au/PublicationsA...ommision_inquiry_on_first_home_ownership.htmlAs a result, prices of residential property have been lifted to the point where the rental yield has reached an extremely low rate. At present, the gross yields are reported to be around 3½ per cent which means that, after payment of municipal rates, water rates, management fees, strata levies, maintenance, etc., the cash yield is around 2½ per cent or a little lower. The gross yield on residential property in other comparable countries is typically between 7 and 10 per cent. In Australia, the typical yields on industrial, commercial and retail property are 8–9 per cent. These are the sorts of yields required to get professional property investors to invest in property, yet households are investing at less than half these yields.
What do you think?
Cheers,
Aceyducey