YIELD vs CAPITAL GROWTH

There’s been a host of policy changes and restrictions applied to residential property investment in recent years. These include the reduction of chattel depreciation, the extension of the bright-line test, looming changes to tenancy law that will better suit tenants, the foreign buyer ban and new rules around the ring-fencing of rental losses.

Taken as a whole, it feels like the Government does not want investors to create their own nest eggs for when they retire. And it certainly throws up additional barriers to those who do want to invest in property.

But, even without these newly introduced obstacles, finding high yielding residential properties is a struggle for investors these days. Basically, unless you find a particularly good deal, you are looking at