12 Feb Rise of the Rentvestor
Rents drop in Sydney for the first time in 12 years! With a high degree of supply in the market and rents dropping across Sydney, those looking for a new home have the option to consider whether to rent or buy.
Domain reported the median house price in December 2018 as approx $1.06 million and the median unit price as $700k.
If you were to purchase a house and borrow up to 90% the repayments at 4% pa would set you back around $1,050 per week. This compared to the median rent reported for a house at the same time being $600 per week! Many first home buyers would rent out their spare rooms to make up the difference.
Similar story for units, if you were to purchase a unit and borrow up to 90% the repayments at 4% pa would set you back around $695 per week. This compared to the median rent reported for a unit at the same time being $510 per week! The cost of renting a unit is now at 2017 levels. These current market conditions may be the reason why we are seeing the rise of the ‘rentvestor’, those whose rent out their principal place of residence and invest in a location that has greater investment appeal.
No Comments