Housing Investors Take Up Slack

So says SMH BusinessDay today. "Investors are being lured back into the market through the prospect of higher rents and price growth, helping to pick up the slack from departing first-home buyers. Investors are taking a bigger share of the market, 31% compared to last year's low of 24%.investors are taking a bigger share of the market, 31% compared to last year's low of 24%. RP Data's Tim Lawless attributes this partly to investors being able to negatively gear their interest payment, whereas other buyers are being scared off by the continuing interest rate rises.
This investor interest is despite rents rising more slowly than expected, actually flat in Sydney last month, according to ANZ. Average rental yield fell across all capital cities to 3.2% in December, down from 3.48% in June last year. However Ray White Beecroft's property management department is continuing to raise rents, and having no problem renting vacated properties at higher rents than the previous tenant was paying.