Have higher rents covered landlords' higher costs?
As rents rise to sky-high levels there's an assumption that landlords are cashing in on the crisis but with higher interest rates and expenses is that the reality? Our case study offers a strong hint.
This renovated property in Melbourne has gone from cash flow positive to significantly cash flow negative in four years. (Image source: Cate Bakos)
While soaring rents across our capital cities and regions are well known, less has been said of the heightened costs associated with holding an investment property.
Rents have broadly changed by approximately 10 per cent per year since early 2020 for most capital cities. Darwin, Canberra and Hobart have exhibited lower rental growth, however, these markets capture considerably fewer investors.
A raft of increased expenses have been imposed upon…
