Rents soar in Perth
The cost of renting or having a mortgage in Perth has increased substantially in the past five years, according to data from the 2011 census.
The census shows that median weekly rent has jumped from $170 to $320 – an increase of 88%.
Mortgages have also increased by 55%, from $1,278 to $1,991. Meanwhile, the average mortgage cost in the rest of Australia moved by a much lower 38%, from $1300 to $1800.
Angie Zigamanis, head of BIS Shrapnel’s Residential Property Unit, said that this increase is good news for investors in WA.
“This is a fairly strong growth, and makes the rental investment market attractive from a cashflow perspective”, Mr. Zigamanis said. “It’s definitely not common”.
Angie attributes the increase to “rising wages and low unemployment”, particularly in regard to the west’s mining boom.
“Strong economic growth in the mining industry flows through to strong income growth across the board”, he said.
Angie said the market has been soft over the past five years, however has tightened in the past six months due in part to a surge in population from both overseas and the eastern states.
- <p>I have been putting clients into Perth & surrounding areas for 18 months and they have taken advantage of excellent growth in rental income as well as good capital growth. Buying below the median price will always make it easier to rent and deliver a higher yield. Brand new 4 bedroom, 2 bathroom DLUG , fully brick homes close to the ocean are around $400k and renting above $400/wk. Over the next 5-10 years the rents and capital value will continue to expand very strongly. It's not just the actual miners who need accommodation, it is new workers in the supporting industries boosted by the 'multiplier' effect of the mining billions who have to house themselves & their families. New train lines, freeways, schools and shopping centres are being built to cater for the growth.</p>0
- <p>Perth's about to kick off. Mining remains strong, and we're through the worst of the flatter market over the past few years. I'd be looking at the cheaper end apartments around the CBD for the fly in and out miners, you can still get in pretty cheap and these will rocket I reckon.</p>0
