Australian rent repayments similar to home loans
The gap between renting and buying continues to shrink.
For Australians, a lack of housing affordability remains a fundamental barrier to securing a mortgage and purchasing their first property. However, new research has found that, on average, repayments for renters are now similar in cost to those of mortgage holders.
An analysis carried out by finder.com.au reveals Aussie renters are paying around $1,200 a month, whereas the average mortgage holder pays $1,467 per month.
Even though the Reserve Bank has left the official cash rate unchanged at 1.50% for the last 10 months, keeping interest rates low, housing affordability remains a stumbling block for many Australian families.
Earlier this month, a separate study by the Australian National University (ANU) found the overwhelming majority (87%) of Australians were concerned future generations will never be able to afford a house.
Deloitte considers investment, population and wage growth key issues impacting housing affordability.
Renters in New South Wales suffer the highest repayments of any state ($1,328 per month), followed closely by residents of Queensland ($1,205) and Victoria ($1,131).
Generation Y ($1,156) pay more in rent than Baby Boomers ($1,066) but less than Generation X ($1,326).
Additional research released by finder.com.au shows that in the current climate, the average Sydney couple will never be able to save enough for a deposit to buy a median-priced house.
The research study also revealed that the average Aussie renter has been in their home for 4.4 years, demonstrating that Australians have a good landlord and tenant relationship.
- Rent gone up? Here’s how to buy your first home sooner
- 8 big economist predictions for 2022 (and how they impact you)
- Housing affordability is in the toilet (and the toilet’s getting expensive)
- Room for improvement: Renters are less happy, more stressed than homeowners
- Could investors make it harder for you to buy a home in 2022?