We have invested in prime inner areas of Melbourne over the years .The IP s that we have have shown strong capital growth and we have been happy with the houses as investments .
We would like to continue to invest in similar houses , but as the rents on our houses have failed to keep pace with the CG , the yield has decreased over time . I am struggling to see how the CG can continue if the rents can’t at least increase at a similar rate ?
The houses that we own are in areas that are Owner Occupier dominated , and this tends to underpin the price , but with rents not increasing , even with lower interest rates, holding costs are becoming more onerous .
Opinions , please ?
We would like to continue to invest in similar houses , but as the rents on our houses have failed to keep pace with the CG , the yield has decreased over time . I am struggling to see how the CG can continue if the rents can’t at least increase at a similar rate ?
The houses that we own are in areas that are Owner Occupier dominated , and this tends to underpin the price , but with rents not increasing , even with lower interest rates, holding costs are becoming more onerous .
Opinions , please ?