Hi,
We are currently planning out first investment property, new to the game and we are doing the research and planning. As part of our forecast modelling over a 5 year period I have a question on projected rental increases.
From what I have read a rule of thumb is property value say $300,000 = weekly rental $300. This looks ok from the properties I have investigated.
However, over 5 years if we consider a 7% growth and rental increases of CPI (currently 2.9) the CPI increases quickly fall way behind the rule of thumb.
Not having any experience in this I do not know what should be considered as a reasonable rental increase? Is it projected growth, CPI or somewhere in between.I would very much welcome your thoughts on this.Thanks Ray
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