Is Now The Right Time To Start Renting?
You could argue that renting a room or property is one of the first steps towards buying a home in Australia. Whether you’re a student looking for a place close to the city for university, a young couple saving for their dream first home or a professional wanting an easy commute to work, renting is often the most logical and cost-effective solution.
In recent years, the rent for that great apartment, unit or room has been too high for many, forcing people to reconsider their living arrangements. However, according to statistics in the most recent CoreLogic July Rent Index, the pendulum has swung towards renters, offering more competitive rates in nearly all major Australian cities – including Sydney.
How much should I expect to pay?
Paying rent becomes a routine or habit, but it can also become a source of stress if you are paying more than you are earning. However, based on the CoreLogic numbers, Sydney renters are in luck.
While overall rental rates increased 0.4 per cent compared to July 2015, the figure has dropped 1.1 per cent compared to the last quarter and 0.2 per cent in June 2016. In fact, every major Australian city except Melbourne and Hobart are experiencing falling rental prices, highlighting the positive signs for those looking to climb onto this rung of the property ladder.
In Sydney, renters can expect to pay around $595 per week. Of course, this number will vary across the city – depending on a number of factors including location, household number and property type.
In more good news, CoreLogic research analyst Cameron Kusher explained that this is just the tip of the iceberg with strong construction, slowing population growth and advanced housing investment on the table.
“It is anticipated that the rental market weakness will persist and that on an annual basis rents will continue to fall over the coming months,” he said.
“Once again the combination of all these factors means that landlords have little scope to increase rental rates in this current market.”
More renters than homeowners?
Of course, with current home prices across the country, there is always the chance that there will be more renters in the market than home buyers. The notion is already in process with the latest Household, Income and Labour Dynamics in Australia (HILDA) reporting less than 50 per cent of Australian adults will own a home in 2017.
At present, 51.7 per cent of Australians aged older than 18 own their own property – in stark contrast to the 57 per cent recorded in the same survey in 2002.
While this isn’t to say that there isn’t affordable housing available, it suggests that some people are considering the merits of saving while renting, in order to be able to purchase a home that better fits their demands and requirements.
Thinking about renting?
It is important to remember that just because you don’t own the home, it doesn’t mean you can’t obtain financial independence. In Sydney, there are countless renting opportunities across a range of prices, property types, amenities and suburbs – all accessible through the helpful team at Laing+Simmons.
From this renting nest egg, you are able to have a place of your own – not worrying about council rates, maintenance and other factors that come with buying a house.
Renting is a legitimate option for people from all walks of life and can provide the base for your dream home in the future. So, if you are interested in renting a house, duplex, apartment, unit or studio, feel free to speak to the expert team at Laing+Simmons today.