SQM Research has produced an interesting chart looking at rental yields across Australia’s capital city. The interesting story here is that Sydney rental yields have barely increased despite dwelling values remaining some 12% below their 2017 peak:
This week’s chart of the week is on capital city gross rental yields.
A revealing chart as it tracks how yields have changed in recent years with some cities recording rises such as Hobart, Adelaide, Melbourne and Perth, while Canberra and Sydney have had some yield compression since 2016. If you consider that the average variable home lending rate is just under 5% before discounts and falling, a number of these capital cities potentially could be offering cash-flow positive property e.g Canberra Darwin, Adelaide, Hobart and even Brisbane would be close to offering cash-flow positive investments after tax.
