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 Lifts Cash Rate to 4.85%
The Reserve Bank of Australia raised the cash rate by 25bps to 4.85%, taking it to a new cycle peak and the highest r...
Published on : 03 Nov 2026 , 03:34 PMAfter leaving OCR unchanged, RBNZ Governor says hike chance in Dec "high"
Remind me how many central banks have stated the odds of the next move in any direction is "high." (Excepti...
Published on : 30 Oct 2026 , 03:23 PMRBNZ's hold surprises
Central banks have surprised with their monetary policy decisions.
But I have never been as surprised...
RBNZ surprises with OCR on hold at 2.75%
The Reserve Bank of New Zealand left the Official Cash Rate unchanged at 2.75%, surprising almost everyone.
RBA Lifts Cash Rate 25bps to 4.60%
The RBA raised the cash rate by 25bps to 4.60%, taking the total rate hike this year to 100bps.
The increas...
Published on : 29 Sep 2026 , 02:45 PMConcerts in Australia and Demand in 2027
There will no doubt be stories about this in the months to come, but based on my understanding, 2027 is turning out t...
Published on : 23 Sep 2026 , 06:54 PMCredit to Macquarie Uni Student
It was a question I was asked by a student at Macquarie University that led to a last-minute decision (I had prepped...
Published on : 23 Sep 2026 , 06:53 PMTwo Big Four Banks Forecasting RBA Sep Hike
Two of the four big banks are now forecasting RBA hike in September. Westpac moved today to September (was the last b...
Published on : 18 Sep 2026 , 06:51 PMRBNZ Assistant Governor Silk to Leave in Dec
RBNZ's assistant governor Karen Silk to leave the bank in December.
The executive leadership team...
Australia and Recession. Really?
Apparently one more RBA cash rate rise will tip Australia into recession, given weak sentiment and housing market dow...
Published on : 10 Sep 2026 , 06:48 PM