According to a recent article on rental properties, out of all the cities in Australia, Sydney is the city that has the highest median house rent. This is because Sydney still has a shortage of affordable rental properties even though it has been called the “city of landlords” based on data that shows that half of Australia’s investment loans were used to purchase rental properties in NSW. In other words, approximately one in every three properties in Sydney is a rental property. Even so, there is still a shortage of affordable rental properties there. As a result, the median house rents went up by 4% last year and the median unit rents went up by 2% with the median weekly rent being $520 for a Sydney house and $500 for a Sydney unit. What that means is that Sydney tenants will have to put up with lower cost of sheds. As if renting doesn’t have enough disadvantages compared to owning your own home: 1) rent could cost as much as a mortgage and the only difference is that the tenant doesn’t end up owning the property; 2) putting up with the invasion of privacy and hassle of regular home inspections; 3) being forced to move when the landlord sells the property; 4) restrictions on what you can do to the property in the form of decorations and fixtures; 5) having a landlord that is lax on fixing anything broken in the rental property.
I don’t know about Sydney tenants, but I know that if I had to pay rent that cost as much as a mortgage, I would rather buy an established house or build a new house with a new custom home builders Launceston, check out here. There are several advantages to choose this option: 1) I would have a nest egg and asset that appreciates over time; 2) I could withdraw the equity if I need funds for an emergency or for investments; 3) I would have the privacy and freedom to do whatever I want in the home; 4) I can decorate and renovate the home whenever and however I like. Sure, the financial commitment of buying or building a house far outweighs renting, but it is a good investment in the long run. Not to mention it is something concrete I can leave my children when I die.
So maybe what Sydney needs is not more rental properties or more tenants, but rather more people who would choose to buy or build new homes instead of renting. That will lessen the demand for rental properties, which in turn will cause the rent to come down. Buying or building a new house is not too difficult to achieve with the help of the First Home Owner Grant and government housing loans for low income applicants. There is hope for Sydney tenants.