Property investors set for cash returns

According to the company, for investment property owners on $75,000 a year, a new $500,000 investment project will remain cash-flow positive until interest rates are between 6.75% and 7.25% depending on whether the property is a high-rise apartment or free-standing house. For those earning $150,000, interest rates would need to go as high as 7.5% for high-rise or 8% on free-standing houses.

Tyron Hyde, Washing Brown director, said depreciation is a key factor in achieving positive or neutral cash flow.

"Our calculations are based on over 20 years worth of depreciation data and provide investors real insight into just how much their property will cost them if interest rates go up," he added.

Hyde pointed out that as interest rates rise, investors need to ensure they are maximizing their tax depreciation allowances.