Australia: More Reason to Buy vs Rent Dwelling
By Sophia Rodrigues
Published On 01 Nov 2019 , 12:00 AMMore reason to buy vs rent? For the first time since at least 2007, gross rental yields for properties in Australia's combined capital cities may be higher than investor mortgage rates (based on 3-year fixed rates). This is because mortgage rates fell faster than gross rental yields in recent months. According to CoreLogic data, gross rental yields for Australia's combined capitals fell to 3.65% in October, the lowest since November last year, due to subdued rental growth and rising housing prices. At the same time, 3-year fixed investor mortgage rate which was around 3.8% at the end of September, may have fallen below 3.65%. (ANZ website shows 3-yr P&I investor mortgage rate is currently 3.44%). This means more properties in capital cities might be showing positive cashflow. Equally importantly, renters may be better off buying a home and paying down mortgage than continuing to rent, according to CoreLogic.
LATEST SNIPPETS
RBA to buy AGS for second straight day
The RBA has announced bond-buying via auction for the second consecutive day, keeping the notified amount unchanged a...
Published on : 06 Aug 2020 , 11:42 AMWeighted average yield at RBA's 2023 bond-buying 0.2575%
The RBA bought A$500 million of 5.5% April 2023 Australian government bonds on Wednesday at a cut-off of 0.2525% and...
Published on : 06 Aug 2020 , 09:02 AMRBA buying only A$500m of one bond line -- April 2023
The RBA is buying A$500 million of April 2023 government bonds as part of its bond-buying program which it resumed We...
Published on : 05 Aug 2020 , 12:45 PMAOFM raises A$15B from sale via syndication of new 2051 bond
The Australian government has raised $15 billion from the sale of the new 1.75% June 2051 bond via syndication,...
Published on : 28 Jul 2020 , 11:58 AMAustralia's 2030 bond syndication record likely unbeaten
It appears Australia's A$19 billion debt syndication for the 2030 bond in May will remain a record, with whi...
Published on : 14 Jul 2020 , 10:46 AMCould we have another record Australia debt syndication?
There is a possibility of a new record for Australia's debt issuance after the 21 November 2025 bond attract...
Published on : 14 Jul 2020 , 10:22 AMAOFM gets order of over A$48.8B for 2025 syndication
The Australian governmen's 21 November 2025 bond has attracted order book of over A$48.8 billion, around 30...
Published on : 14 Jul 2020 , 09:07 AMAOFM issue guidance for new issuance in 2020-21
AOFM issues guidance for new issuance in 2020-21 that will apply until the 2020-21 federal budget is handed down...
Published on : 03 Jul 2020 , 12:18 PMAOFM issues A$2.0B of Nov 2024 bond at 0.3654%
The AOFM has sold A$2.0 billion of 0.25% November 2024 government bond at a weighted average issue yield of 0.36...
Published on : 03 Jul 2020 , 11:23 AMAOFM sells Nov 2028 bond at 0.7959%
The AOFM sold A$2.0 billion of 2.75% November 2028 government bond at a weighted average yield of 0.7959%. ...
Published on : 01 Jul 2020 , 11:09 AM