The June quarter report showed that Adelaide’s rental yields (4.1%) have excelled above Sydney (2.8%) Melbourne (2.6%) and Perth (3.6%).
Rental growth is increasing, approximately 31% of Australians are currently renting. Even though the median household weekly rent has increased from $285-$335. Rents are more than likely going to continue to rise due to increased demand.
With such a high proportion of renters in Australia what are their thoughts about the process?
A recent study of Australian renters showed 42% of renters were concerned that their rent would increase and therefore were too worried to report any maintenance that they feel was necessary to be repaired. 39% of renters also felt discriminated against because they had a pet.
Why are people choosing to rent over buying?
In some cases it is not about unaffordability. Some of the attributing reasons are as follows;
- Lifestyle choices
- Negative outlook about the future and economy
How does the Australian rental system differ from others?
The Australian rental system is diverse to the European system, for example, Netherlands where tenants are offered a 12 month contract and have the option to extend for a further 5 or 10 years. If the landlord would like to terminate a lease, the landlord must have received the tenant’s permission and a court order. In Germany tenants are welcome to paint the walls of the rental property whatever colour they desire, as long as they repaint the walls white before vacating. Furthermore, average rents in London are equal to 72% of the average income!!
With renting becoming increasingly common in Australia, will we see a shift to more European systems In the future, which provides more security and rights to tenants? This seems likely, but only time will tell.
Sa realestate news 2017