Investor Activity Changes Tack

Investors are changing tack, turning away from existing properties and seeking out new homes and high-yielding assets.

A larger share of investors are now inquiring about properties with higher rental yields than before the Federal Budget changes to investment taxes were announced, according to the PropTrack Terri Sheer Investors Report.

Senior economist Angus Moore says investors are shifting toward higher-yielding rental properties.

“These investments are more likely to provide positive cash flow, rather than relying on home price growth,” he says.

The report says investors are “over-represented” in the more affordable areas of major cities, which tend to have higher yields.

Inquiries from investors in New South Wales are strongest in areas such as the Blue Mountains, St Marys, Fairfield, Mount Druitt and Blacktown.

In Victoria, inquiries are strongest in Brimbank, Tullamarine, Broadmeadows and Wyndham and in Western Australia, inquiries are strongest around Rockingham, Mandurah, Gosnells, Armadale, and Canning.

Queensland’s most interest from investors is more coastal than affordable, around the the Gold Coast and Sunshine Coast including Surfers Paradise, Broadbeach-Burleigh, Southport and Noosa.