2015 was a lacklustre year for rental growth in Australia with rents increasing by just 0.3%; not exactly the news investors are looking to read.
According to CoreLogic RP Data research analyst Cameron Kusher: “We’ve never seen rental growth as sluggish as it is at the moment. Furthermore, we’re expecting to see more of the same over the coming months due to increases in the supply of new housing, rental stock and a further slowdown in migration rates”.
“It is clear that the increase in investment stock continues to provide landlords with little scope to lift rental rates while the low mortgage rate environment provides little incentive to push yields higher.”
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Shared Solar offers incremental income
With growth in rental rates likely to remain weak or potentially slow even further, investors may be facing weaker capital gains coupled with little in the way of rental growth or yield.
Facing this challenge Digital Solar can help investors buck the trend, driving growth and creating value for their tenants.
The Digital Solar service enables investors to generate incremental income by selling electricity to tenants from solar panels they install on their rental property. The service takes the effort out of selling solar by handling the billing and collection of revenue so investors can sit back and enjoy the rewards.
Most investors can expect to earn five times the cost of the panels and, by discounting the solar energy relative to grid electricity, tenants can save on average 20% off their electricity, making the rental property more attractive.
With returns improving over time this service is a game changer for resourceful property investors and offers upside in an otherwise lacklustre market.