Now is the perfect time to buy a property, new research from Mortgage Choice has revealed.
According to the brokerage, low rental vacancy rates, rising rents and healthy levels of immigration have combined to form the perfect market for property investors.
Mortgage Choice spokesperson Kristy Sheppard said figures from RP Data found that capital city rents increased by 4.2 per cent in 2010 and they are expected to rise by 7 per cent in 2011.
“To put this into real terms, in Sydney it equates to an extra $33.60 on the average weekly rent of $480 for a house and $30.80 on the average weekly rent of $440 for a unit,” she said.
“Then consider that it looks likely we’ll see interest rate rises of around 0.5 per cent by the end of 2011. For a 30-year $300,000 principal and interest home loan at 7 per cent – by no means the lowest rate available – this means $23.47 extra on the required weekly repayment of $460.29.
“Times are tougher financially for tenants and mortgage holders but at least the latter group has an asset to show for that money spent. Also, those who are investment property owners can up the rent they charge to compensate for their repayment rises.”