Rental rates go through the roof

Font size :

Owners of rental properties around Australia have enjoyed a strong revival as rates skyrocketed over the past 12 months, a new report has revealed.

Residex said in its latest advisory that most property investors around Australia are now getting an extra $70 per week or $280 per month in rent. This means an average Aussie household is now handing out an extra 6% of their gross income to their landlords.

Rental rates grew the fastest in Perth, jumping by a whopping 31.9% over the past 12 months ending July 2007. Brisbane properties enjoyed a 20% rise while Melbourne rose by 14.2%. The tightening rental market in Sydney has pushed rates up by 18.9%.

"The issue for renters is that no proposal put forward as yet will solve the rental increase and the problem is only going to get worse as demand is higher than supply," wrote John Edwards, CEO of Residex. "We expect rents across Australia to increase by at least a further $50 per week."

Despite the sharp rental rises, Edwards said this increase would still not provide an investor with a return, which was acceptable. "A $50 per week increase would only provide an investor in a typical Melbourne unit with a return of 5.5%," said Edwards.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords