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Rents outpacing inflation and offering investor rewards

Capital growth is the coveted prize sought by most property investors but with rents consistently outpacing inflation it's also important to invest in multiple rent-producing properties to achieve a healthy income.

Young woman looking in the window of an estate agent.
Rents across capital city markets have risen by 10 per cent in the past 12 months. (Image source: Shutterstock.com)

The end goal of property investment for most is to build future wealth and the way that most investors achieve that is through capital gains when it comes time to sell.

What often gets forgotten is that rents increase over time, too. In fact, rents have increased by at least 2 per cent above inflation for the past two decades.

But the rising rent environment means some investors are achieving such high rent returns that there is plenty of immed…

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