According to new research from Onthehouse/Residex, it’s now cheaper to rent than pay off a mortgage across much of Australia. And that means there’s never been a better time to get your foot in the door as a property investor.
First homebuyer numbers have been decreasing since last years, so there’s now more tenants than ever looking for quality homes to rent – and that’s great news for investors.As younger buyers find it more difficult to afford homes, higher numbers of investors are taking advantage of the record low interest rates to increase their property portfolios and take advantage of rising rent prices.
Also, as rents rise, the risks for investors are diminishing because there is more recurring cash flow to pay of the investment debt.The new Onthehouse/Residex data shows that, in NSW, first homebuyers made up just 7% of the property retail market. Sydney, in particular, showed huge differences between renting versus buying costs.
This will also mean that first homebuyers will be forced to move out of the city and into regional towns, building regional growth. In fact, experts are predicting that good growth in larger regional towns is soon likely to surpass growth in capital cities.
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