Australia rental market 'set to improve'

Falling interest rates, low prices and rising rents are resulting in an increase in interest in Australia's property investment market, it has been claimed.

According to the Australian, buyers in some areas of Sydney and Melbourne are now able to purchase properties that will provide a greater rental return than the cost of mortgage repayments.

Speaking to the newspaper, managing director of SQM Research Louis Christopher stated that small, inner-city apartments and homes in cheaper suburbs are likely to provide the highest rental returns.

"Vacancy rates are still very tight at the affordable end of the market so rents will continue to rise in the sector in 2009, further boosting returns for investors," he stated.

However, Mr Christopher noted that those looking to invest in the market need to ensure they have plentiful equity, something which UK buyers may wish to keep in mind.

A survey recently conducted by Pickfords revealed that Australia is growing in popularity among Britons, with Queensland being the top state for those looking to move to the country.

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