Australian property prices have cooled after years of gains, but rental yields are climbing sharply. The speaker argues higher rates don't kill real estate investing if you buy quality properties in strong locations and hold long-term to capture those yields.
Okay, let's talk property growth in Australia. Here are some things we know. We've been through a big boom over the last few years in the property market, but things have started to calm down. Also, interest rates have gone up and the cost of owning a piece of real estate has gone up with it. But the question you've got to ask is, does that mean that it's not a good time to be buying real estate in Australia? I want you to think about this a little bit differently because while we've seen capital growth starting to go down, we've started to see rental yields start to go through the roof. So while interest rates have gone up, Rental yields have really started to shoot up as well. So here's something to think about. What if for right now, while prices have calmed down, you were focusing on buying some good quality real estate in good quality locations that you are happy to own for a long-term period of time while you're getting some really strong rental yields in the marketplace? Different way of thinking about real estate investing, especially given that it is a long-term game.
