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Slow and steady rent rises for Melbourne in 2015

ByJamil Allouche

Rental costs increased slightly over the course of 2015, with average rents up 0.3 per cent across the country, figures from CoreLogic RP Data reveal. It was a similar situation in Melbourne, although the city saw the strongest year-on-year rise in the nation.

If you have invested in Pascoe Vale real estate and rent it out, then the results are likely to prove interesting reading. The group showed that the average rent in Melbourne currently stands at $450 per week, up 2.2 per cent since the end of 2014.

No month-on-month increase was registered, but a quarterly gain of 0.4 per cent was seen throughout the city. Units are offering the strongest returns, as landlords have seen four per cent gross rental yields from this type of property. For houses, this gain stood at just three per cent.

"Although Sydney and Melbourne saw the largest ramp up in new housing supply, both cities still recorded rental increases over the year, although rental growth is slowing relative to 12 months earlier," explained CoreLogic RP Data research analyst Cameron Kusher.

Many other parts of Australia have suffered from an increase in rental supply, meaning landlords haven't been able to enforce rent rises. There's also the fact that mortgage rates remain low, which has had a negative impact on yields.

Is now a good time to buy?

One major decision that people face is when is the best time to buy real estate in Pascoe Vale. While there's no easy answer, there are certain factors well worth taking a closer look at.

For example, the Australian Bureau of Statistics recently revealed that home loan approvals were up three per cent in seasonally adjusted terms in September. This suggests that lenders are increasing the number of mortgages they approve, which could indicate the market is working in your favour.

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