According to RP Data figures the number of properties being advertised for rent in Australia has begun to fall in recent weeks. This linked to the lack of new housing supply, continuing population growth and stretched affordability.
In Sydney rental listings are down by 10% on that recorded the same time last year (Darwin was amazingly up by 64% !!!). The good news for landlords is that over the 12 months to March 2011, the strongest growth in rents across the country has been recorded within Sydney at 5.3%.
We have had some landlords query as to if the rents are getting so high – why aren’t the tenants purchasing property. Whilst mortgage repayments might be possible for many people, one of the challenges is getting the deposit together. Gone are the days of 95% or 100% finance. The banks now want a minimum of 10% deposit. If you consider an average sale price of around $550,000 – this means having $55,000 cash. Many people simply aren’t able to get this together.