Investors looking to secure Belconnen rentals as investment properties are likely to not be alone in the market, as new research has shown that investor activity is on the rise in the country.
A report from RP Data has shown that the level of housing finance used to purchase investment properties in Australia reached $8.4 billion in May this year – the highest level seen since January 2008.
According to RP Data researcher Cameron Kusher, first home buyer activity in the real estate market has gradually decreased over the last few years, which has left room for both investors and home upgraders to grow.
First home buyers took up a 31.4 per cent share of all owner-occupier finance commitments back in 2009, and this has since dropped to 14.6 per cent in May 2013.
This translates to around 10,000 fewer properties being bought this year by new market entrants than there were in 2009.
Houses for rent in Belconnen and surrounding suburbs in Canberra produce a good level of rental yields for investors, with RP Data reporting a rate of 4.6 per cent for houses and 5.6 per cent for units in June 2013.
This, coupled with current low interest rates, may help to attract more investors to the market to secure a long term positive investment.