Australian residential property is again being viewed as a solid investment, even though low mortgage interest rates won't last forever. This is good news for mortgage brokers who work with investors.
The home construction slow down over the last 12 months hurt mortgage brokers in the area, but that in turn has created a tight rental market and investors are back in the game.
In fact the combination of low interest rates, high rent returns and low prices can produce ,"positively geared" investments. This means two things. Property can be attractive to lower income earners without tax to offset,to be a money making proposition from day one.
This means low capital growth is not a deterrent, and this could be the case over the next few years.
At the end of the day people need somewhere to live and keep their stuff.
If they can't afford to buy, they rent and that means that there will always be people who need to rent in areas with schools, transport and near work.
