First time in recorded history, it is actually cheaper to buy the house you are renting in Perth!

Perth’s gross rental yield is now in the low 4%s. Our 3 and 5 year fixed interest rates are in the low 3%s. This is the first time in recorded history that it is actually cheaper to buy the house you are renting.

As the global market continues to stagnate and supply of property in Perth continues to grow below population rates for the next couple of years, that gap will keep widening, in my opinion.

If you are looking to buy in as a landlord, you should be able to start off positively geared, which is normally the goal of long-term investors after some capital growth.

You now have to make the decision on whether the asset you are looking to buy is under-valued, and the market you are looking to buy into has fundamentals for growth in the mid-term.

Trent Fleskens

Host of the Perth Property Show