RP Data’s Quarterly Rental Review reveals the regions where you’d be better off buying than renting.
Many mortgage payments are now falling well below the median asking rent for Sydney apartments, which rose two per cent over the June quarter to $500 a week, according to RP Data’s Quarterly Rental Review.
Figures produced by research group comparator now show that from January to March 2014 the average value of loans originated by mortgage brokers is $355,000*.
Based on Aussie Select’s current rates of 4.84% (comparative rate at 4.85%^) for a 30 year loan, this equates to loan repayments of $431.52 a week. That’s almost $70 a week less than the median rental payment.
Here’s an overview of Sydney’s regions and the average weekly rents and rental growth for houses and apartments.
If you’re in the rental trap now’s a good time to seriously consider ways of getting into the property market, while rates are so low and rents are largely showing continuing growth. Just be sure to consider other costs of buying property, like insurance, rates and maintenance.
Make sure you’re saving by cutting as many costs as you can. Talking to a mortgage broker or seeking the advice of an accountant will help you to investigate and understand your financial position and whether you’re in a position to get on the property ladder. It could be more within your reach than you realise! It doesn’t always take a 20% deposit to get a home loan either, so don’t count yourself out of the market before investigating your options.
Are you in Sydney and still renting? Have you looked into buying versus renting?
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