Rental Yields Rise to Seven-Year High Amid Investor Cash Flow Squeeze

CoreLogic's review shows national gross rental yields at 3.85 percent in September, up from 3.61 percent a year prior, despite slower rental growth. Mortgage rates for investor loans average in the mid-to-high 6 percent range, impacting profitability.

In Melbourne's western growth corridor, strong rental yields might attract some investors, but high borrowing costs remain a significant hurdle. Existing landlords could see improved returns, while new entrants face tighter margins.