It’s the news city dwellers hate to hear, but with huge demand for rental properties at an all-time high, so too are the sky high prices to match.
Last year’s string of interest rate increases, combined with peak employment and the end of the first home buyers’ grant are all to blame.
For those really feeling the pinch, consider these tips:
Is the daily grind worth it?
Flocking to the cities is an inevitability for some from small towns, but is it so great after all? The daily commute alongside straight faced (and very grumpy) suit types can be draining, and depressing. The bus or train is often the only option, except for $50+ daily parking. Believe it or not, there is another way! Consider a job, career or entire lifestyle change by deserting the big smoke.
Time for a sea change
For those living in cites, there are an array of options if you want to get your toes wet. But how often do you take advantage of it? Unless you’re cashed up, chances are you don’t live beach side. Leaving the city can mean shorter days, beach frontage, and the time to feel the sand between your toes.
See your bank balance GROW
From fuel and parking, to a snack bar sandwich, to your daily coffee – it all costs more in cities. By moving to a smaller town, or even a neighbouring city, you will see your savings take a nice boost.
More time to stop and smell the roses
Live the dream, and halve or quarter your commute. You’ll have more free time on your hands to do the things you want, and waste less time staring at the car in front.
Children on the horizon
If you’re considering starting a family, why not give them a childhood in the burbs where they can enjoy bigger backyards and more freedom? Chances are they’ll also have a happier Mummy and Daddy.
Can’t say goodbye
If you really can’t bid farewell to the big smoke, consider one of its fairer cousins. Hobart, Adelaide, Canberra and Darwin all offer more reasonable rental prices than the big boys of Sydney, Melbourne and Brisbane.
Still not convinced?
RUN Property, which manages 18,000 properties in Melbourne, Sydney and Brisbane, said rents have increased by up to $60 a week in the nation’s hottest suburbs. CEO Rob Farmer said “Many properties are being re-let during tenants’ vacating periods, so they never actually become vacant.”
Demand for rental properties remains the highest in inner city suburbs. RUN Property said at one advertised property in North Melbourne, a one-bedroom apartment advertised at $350 a week – up $30 a week from the previous tenancy – attracted 25 groups to an inspection with several applying to rent it.
Renting a property is a cut throat business in inner-city suburbs, and many tenants are staying put because research has shown that rent increases are greatest when tenants move and the property is advertised for lease.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan