Is now a good time to buy an investment property?

WATCH: Is now a good time to buy an investment property?

Transcript

00:00Is now a good time to look at an investment property? Well, we've crunched the numbers to

00:05see if the back end of 2025 might be an ideal time for you to look at the market in the ACT.

00:10The first thing to consider is rental yield. Now, that is currently at about 4.1% across the

00:16territory. It's up from 3.8% three years ago, but it's still down from the historic 10-year average

00:23before COVID, which was 4.8%. We can also split that into houses and units. Units at the moment

00:29have a greater rental yield at about 5.3%, which is up from 5.1% last year. Houses, however,

00:36are sitting at about 3.8% in May, up from 3.7% the May the year before. But then, of course,

00:42there's things like how worth it is going to be to own a unit in the long run when you look at resale

00:47potential later down the track. There's quite a steady pipeline of apartments coming through

00:52in the ACT, which could subdue the value a little further. We also need to look at the fact that

00:57home values are starting to go up again after being pretty stagnant for about three years in

01:02the territory. And that means that we could see the gap lessen between rental yield and the value

01:06of your home, which means that the back end of 2025 might be an okay time to look, but getting into

01:122026 territory in the next financial year, there could be less incentive to buy an investment property

01:19because of lower yield prices. Of course, there's other things that come into this for people as well.

01:23There's things like how long you want to hold onto a property for, whether you are buying it for a

01:28particular reason, maybe to boost your retirement. And there's people buying investment properties

01:32continuously through the territory. So speaking to an agent can really help with that.