New to Canberra. Thinking about purchasing a property as an investment. I’ve been told that investment properties are good here because you get high rental rates.
However, looking at your allhomes site, it seems that rental yields are quite low. Properties that are selling for 500k may be only renting out for $460-470 p/w. If it’s a townhouse, you may need to pay body corporate of $2000+, which ends up being like $60 a week so really, your rental returns are about $400 a week. This is before you take into account repairs, vacancies, agent fees etc.
$400p/w on a 500k is a rent yield of just over 4%. That seems rather low.
Is that normal in Canberra? I hear there are lots of job losses lately, are the rents just uncharacteristically low right and should go back to normal? Are the house prices just advertised too high? Is it common to make an offer below the asking price in Canberra?