The Australian Consumer Price Index (CPI) provides us with the average rate of inflation. On average, it equates to 3.1% every year. Some locations have a higher rate depending on where you buy. This choice in location can not only change the capital growth prospects of an investment property but also your expected rental income.
So, if you are receiving $400 a week today, in ten years you could expect $558.53 a week.
As rent increases, you will fast track your repayments, making your property positively geared. We can then look at duplicating and adding additional properties to your portfolio.