Property investors will be the big winners during 2010 with strong demand for rental properties set to soar and experts urging investors to get in now ahead of expected price rises.
A bumper year is expected as rent increases and strong capital gains will offer double-whammy returns during 2010.
The number of people intending to become property investors has almost doubled during the past year, according to the latest research from Resi Mortgage Corporation.
Resi consumer advocate Lisa Montgomery says there has already been a strong return from investors to bricks and mortar over 2009 after being stung by the share market.
Research shows that demand for rental properties, from both investors and tenants, is expected to surge during the next few months as people attempt to lock in properties before prices rise even further.
"It certainly is good times ahead for landlords," Ms Montgomery says.
"People are noticing that yields are high and property has returned to being the 'new black' to invest in. Confidence is out there."
In Melbourne, research company Australian Property Monitors expects rents to rise by 5.6% to 11% over 2010.
APM economist Matthew Bell says, "An improving employment outlook means, overall, renters will be more willing and able to afford rental increases.''
The well documented housing shortage is expected to worsen as immigration continues to increase and first-home owners opt out of buying and remain as renters.
"On the supply side of things, there simply aren't enough new properties being built for investment purposes to meet this increased demand,'' Mr Bell says.