Looking for a house on rent in Australia’s biggest and best locations can give the most hardened tenant some rude shocks right now. Renters in Darwin, Perth and Sydney are finding out that rates are zooming sky high in these locations for properties on rent. Perth, in particular, is leading this trend from the front. Both house and unit rentals have risen quickly to dizzying heights in a relatively short span of time and landlords appear to be quite willing to keep the rates rising here. New home buyers are a happy lot here as, unlike renters, their monthly outgo serves to increase their equity in the home.
Rentals have Risen Significantly from January to March
Even over the relatively short period from January to March this year, some substantial changes have come about in average rental prices in Perth. Landlords have increased rental rates by 4.3% over this three month period for house properties. Units have fared slightly better with a lower 3.8% increase being witnessed over the same period. When compared with house rents that prevailed exactly a year back, there is more than a 22% hike when it comes to houses, according to Australian Property Monitors.
Perth- the Most Expensive Place to Rent in Australia?
If this trend continues to grow strong, Perth may well become Australia’s most expensive city with respect to rentals, in no time at all. In fact, market experts believe this may come about in the coming quarter. But Perth is not the only city to boast soaring rentals. Tenants in Sydney and Darwin are facing the same problem. The pressure on rent is not likely to ease off any time soon either as housing shortage continues to be a problem here.
Own your Home to Avoid Rental Woes
On the flip side, these soaring rental values set the stage for home buying in these locations. With fixed interest rate levels dipping to all- time lows, renters may be well advised to consider switching from a monthly payout to their landlord to a monthly loan repayment to their lender.
A return of confidence to Australian property markets in the recent months signals the beginning of a housing recovery here. While all locations have not fared equally well in terms of garnering buyer confidence, the prime locations of Sydney and Perth are clearly favored destinations for home buyers. Low and medium priced properties are very much in demand as the total outlay for these remains affordable for Australians.
With interest rates remaining subdued for now and rentals increasing year after year, buying a home has gained a new sheen in the recent months. Savvy buyers should make their purchase right away with a fixed rate loan locked into the current low rate to make the best of this unique opportunity in the Australian real estate market.