Pulse and Positive

It looks increasingly likely that we have passed the end of the interest rate cycle and that the next change by the RBA is likely to be a REDUCTION in the official cash rate. In the meantime, mortgage rates will remain high, compared to their levels prior to May 2022, when the first increase by the RBA occurred. The general consensus from economists – who are, let’s face it, not particularly good with forecasting anything to do with the housing market – is that any reduction in interest rates will be in the second half of the calendar year. So, for the foreseeable future, we are going to see most investors seeking locations that offer above-average rental yields – to give them the best chance of securing an investment property that pays all or most of the costs of ownership. This means our special quarterly report, The Pulse, will continue to be one of the most important and relevant among those published by Hotspotting. The Pulse identifies 50 locations across Australia with affordable prices and above-average rental yields – but, importantly, they are places which also have good credentials for capital growth. Let’s face it, Australia has many regional towns with cheaper prices and high rental yields, but very little prospect for price growth. In Broken Hill in the far west of NSW you can buy the average house for under $200,000 and the gross rental yield is around 10%, which may sound appealing, but capital growth prospects are weak. Homes are cheap there for a reason. With The Pulse, we identify 50 places with growth prospects, as well as prices that are within reach of MOST investors - and rental yields ranging from 5% to 8%. With The Pulse package you get a spreadsheet summarising the main attributes of the 50 locations, plus a report with key background detail on each of those 50 places. It’s a product designed for the times we are in, where growth locations offering better than average rental yields are a key metric sought by many real estate consumers.