Monday, 16 November 2020

The quest for yield

Positive cashflow

Interesting observation and stats via Tim Boyle of Finalytics and CoreLogic.

With investment property loans now available from around 2½ per cent.


Source: Tim Boyle, CoreLogic

For those seeking it, neutral or positive cashflow is a possibility, even in the capital cities, something we haven't seen for a long time.

The cashflow outcome is also a function of the type of loan (interest-only loans are often favoured by investors, where available), the size of the deposit, and the type of property being purchased (properties built later may attract more depreciation deductions, for example). 

This shifting dynamic will likely see the return of property investors in 2021.