If you are considering investing in real estate in Darwin, now could be the time to take your first step onto the property ladder.
This is because gross rental yields have reached 6.3 per cent for houses and 6.4 per cent for units, according to RP Data. Gross rental yields can be calculated by dividing the annual income from rent by the price of the property which gives investors an idea of how profitable the property is.
And it's not only rental yields that make Darwin Property attractive. The median price for homes in this city is $510,000 according to RP Data-Rismark Hedonic Home Value Index Results.
Houses in Darwin have become more affordable, dropping 2.5 per cent, according to the RP Data-Rismark index. This is another great reason to jump in and invest now.
The historically low cash rate will also be an incentive for potential investors and the Real Estate Institute of Australia (REIA) said low rates have given first home buyers confidence, according to Chief Executive Amanda Lynch.
"As a result of the easing monetary policy, housing affordability in Australia is now at its
lowest level in a decade. Nationally, it now takes 28.7 per cent of the median family income to
meet average loan repayments," she said.