Mortgage Choice has released data showing Australians should escape the price increases in the rental market and purchase their own property.
Rising rent and a limited market are causes for distress for many Australians, however they feel they are unprepared to make the leap into property ownership.
Mortgage Choice argues that buying a home is not as difficult as it seems for those who are committed to overcoming the housing affordability challenge.
Company spokesperson Kristy Sheppard said that although it was a serious commitment, with rent prices perpetually rising people need to resist the temptation to live only in ‘the now’.
“Tenants who are keen to escape the rental need to contemplate their future wants.
“With the housing undersupply issue looking to continue while population growth and rents rise, rental vacancy rates fall and housing prices trend upwards, some may find that now is a good time to set a property purchase plan in action.”
The average cost of rent per month in Australia’s capital cities is now almost at two thousand dollars, with Sydney and Canberra the most expensive.
In Canberra, the median cost of rent is $445 a week, or $1,928 per month while for Sydney and Melbourne these figures are now at $1,777 and Melbourne $1,444 per month respectively.
A competitive housing market in Darwin has pushed the average rent to $1,681 with Brisbane and Perth situated just under at $1,517.
In comparison, a 30 year $300,000 home loan at 7% is $1,996 in repayments.
“If the thought of paying your own mortgage instead of your landlord’s is appealing, then save hard, get professional assistance, make the commitment and stick to it!”
