Investors who are keen to take a long-term approach to their investment strategies will be the big winners in the end, a new report has claimed.

According to a recent house price report by Australian Property Monitors, median property prices in June quarter have dropped year-on year for most capital cities, which is boosting gross rental yields across many regions of Australia.

“Australia’s property investment market has certainly improved compared to last year with property values falling and some areas saw increased asking rents, which has improved yields. Year-on-year gross rental yields for the June quarter has increased for every capital city except for units in Hobart, according to APM,” RateCity spokesperson Michelle Hutchison said.

“While these are positive signs for investors, there are conflicting views on the outlook of the property market. Investors thinking about jumping into property this year shouldn’t expect an improvement every year and a more traditional long term approach should be taken.” Ms Hutchison said finding the right investment loan can have a major impact on the overall return and investors need to do their research on the home loan market. “Property is one part of the investment equation because finding a good deal on an investment loan can make a significant difference to the net return you earn from your investment. For instance, the difference between standard variable investment loan interest rate range by up to 178 basis points, which could mean an extra $350 each month or $126,000 after 30 years,” she said.

“Lenders are eager to lend to investors so there is real opportunity to negotiate hard and secure a good home loan deal if you do your research.”    

John Whitten can be contacted on 0749722081 or 0410433919. You can also email him at jwhitten@ihl.net.au or look him up on the net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).