Investment properties on the rise as house values fall
A property investment could be the way to go in the current volatile housing market, the latest results from the RP Data-Rismark Home Value Index have revealed.
According to the data, housing values continued to decline across the country last month, with the exception of Adelaide which experienced the only increase of 1.2 per cent.
However, rental revenue has increased in every capital city in the last year - if you are looking at buying a dwelling, it might be a good idea to consider an investment property which you can lease out.
RP Data research director Tim Lawless said while rentals are not at their 2009 peak; they had significantly increased in some cities including Perth and Darwin.
Falling by 1.4 per cent during May, the drop in dwelling values across the country for the year to May was a combined 2.2 per cent.
This comes off the back of a total 5.3 per cent decrease in the last year.
Mr Lawless said luxury properties and expensive suburbs had contributed to the housing market downturn.
"During the growth phase of the cycle the most expensive homes realised the highest capital gains.
"Yet as the market cools premium home values seem to be losing steam the fastest," he explained.