Cheapest Capital City Suburbs To Rent Today
Australia is in the midst of a rental crisis, with weekly rents rising 30% over 38 consecutive months
Australia is in the midst of a rental crisis, with weekly rents rising 30% over 38 consecutive months
It costs a median $616 per week to rent a property across Australia’s combined capital cities, with rents rising 10% over the past 12 months alone, according to new CoreLogic data. The cost is lower across the combined regions a median of $507 per week, up 4.1% over the past year.
Rents across Australia have risen by 30% over 38 consecutive months, adding $137 per week to the median cost of renting. The number of properties being advertised for rent fell to its lowest level in more than 10 years during the September quarter. A rental vacancy rate of 3% is considered a balanced market but rates are now at record lows of 1% in the capitals and 1.2% in the regions.
CoreLogic Economist Kaytlin Ezzy said record high net overseas migration and an estimated shortfall of 47,500 rental homes were pushing rental values higher. However, she noted that the pace of rental growth is starting to slow, with national rents rising 1.6% in the September quarter compared to 2.2% in the June quarter, as renters hit an affordability ceiling.
Ms Ezzy said more renters were banding together to form larger households to share the burdensome cost – a trend that is creating stronger demand for rental houses, in particular. “There is already some evidence that a structural change in household formation, coupled with worsening affordability in the unit sector, has shifted some rental demand back in favour of the low-density sector,” Ms Ezzy said. “National house rents are now rising faster than unit rents … reversing the trend seen through much of 2022 and the first half of 2023.”
CoreLogic has published a report revealing the cheapest suburbs to rent in within a 20km radius of capital city CBDs. The list below shows the current median weekly rent in each suburb.
Auburn $648 pw
South Granville $657 pw
Granville $673 pw
Regents Park $675 pw
Sefton $676 pw
Berala $486 pw
Wiley Park $491 pw
Punchbowl $498 pw
Lakemba $501 pw
Regents Park $509 pw
Albanvale $441 pw
Laverton $441 pw
Broadmeadows $441 pw
Kings Park $442 pw
Ardeer $443 pw
Albion $366 pw
St Albans $398 pw
Deer Park $406 pw
Kingsville $411 pw
Thomastown $420 pw
Woodridge $501 pw
Inala $503 pw
Ellen Grove $523 pw
Darra $526 pw
Rocklea $544 pw
Woodridge $352 pw
Rochedale South $436 pw
Strathpine $446 pw
Brendale $459 pw
Alexandra Hills $468 pw
Salisbury $473 pw
Braham Lodge $475 pw
Salisbury Downs $478 pw
Paralowie $498 pw
Taperoo $502 pw
Salisbury East $361 pw
Salisbury $378 pw
Kilburn $397 pw
Klemzig $402 pw
St Marys $403 pw
Girrawheen $491 pw
Gosnells $501 pw
Midland $503 pw
Middle Swan $518 pw
Koondoola $519 pw
Midland $433 pw
Gosnells $441 pw
Noranda $445 pw
Hamilton Hill $457 pw
Coolbellup $462 pw
Bridgewater $485 pw
Midway Point $501 pw
Chigwell $501 pw
Claremont $509 pw
Berridale $516 pw
Claremont $411 pw
West Moonah $422 pw
Glenorchy $431 pw
Lindisfarne $456 pw
New Town $463 pw
Higgins $597 pw
Scullin $598 pw
Page $599 pw
Charnwood $599 pw
Holt $599 pw
Lyons $468 pw
Chifley $494 pw
Hawker $501 pw
Mawson $528 pw
Gungahlin $529 pw
Moulden $539 pw
Gray $549 pw
Driver $564 pw
Woodroffe $587 pw
Bakewell $591 pw
Bakewell $457 pw
Leanyer $468 pw
Coconut Grove $475 pw
Millner $478 pw
Rapid Creek $494 pw
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If you’re looking to secure a home loan, you might want to consider these expert tips…
No matter whether you’re a first home buyer or a seasoned investor, entering the property market right now, in whatever capacity, is a tricky task thanks to high interest rates and a super competitive market across the board.
With Google searches like ‘how much deposit do I need to buy a house’ and ‘how to get a home loan’ currently trending, there’s one question potential buyers should be asking, as well: ‘what are the things to stop doing before applying for a home loan’.
Barbara Giamalis, a mortgage broker at Tiimely Home, has over 25 years of experience on the matter, and says there are certainly some factors to consider when applying for a home loan that can better your chances of success.
“There’s no right or wrong time to purchase a home; it all depends on every person’s financial situation, but you must ensure you’re comfortable paying back the loan based on your personal financial circumstances,” said Ms Giamalis.
“The number one question I’m asked is, ‘how much can I borrow?’, but there’s a huge difference between what people can borrow now in comparison to rates. By enacting some of these small tips below, it might just be the difference between getting approved or denied for a home loan.”
Below, Ms Giamalis lists five things you should consider stopping if you’re planning to apply for a home loan. And with predications of lower interest rates coming into play this year, there’s never been a better time to get on top of the home loan race.
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1. Consider cancelling your credit card
This is a simple one. Typically, if you’re looking to borrow more money for a higher loan, it’s wise to close any credit card accounts you have open. Contrary to popular opinion, you definitely don’t need a credit card to build your credit score to get a home loan.
“If you’ve got credit cards, try and pay them off and cancel them before applying for a loan because it gives you greater borrowing power,” said Ms Giamalis.
“You don’t need a good credit score through a credit card to get approved for a home loan as your credit rating is what it is. If you’re a first-time borrower and never had a loan, your rating won’t be great, it might be around 700, but it’s better than having 800 with two credit cards.”
Typically, a credit card rating is calculated from your credit report, which is essentially a history of your credit card actions. It’s calculated based off your line of credit (the amount you have borrowed), your credit application history, and whether you have paid your debts in time. Your score will be highlighted between zero to 1,200; the higher the score, the better your odds are of getting a loan. The lower your score, riskier you present to potential lenders.
2. Stop using ‘Buy Now, Pay Later’ schemes
We’ve all been there. ‘Buy Now, Pay Later’ services present as extremely attractive payment alternatives when shopping online. But therein lies the danger; such services rely on its customers not making repayments in time.
And if you’re considering applying for a home loan, it’s wise to avoid using such services all together.
“If an applicant opts to pay off purchases in increments, even interest-free payments, this could signal to some lenders that the applicant may not be financially stable,” said Ms Giamalis.
“Most lenders will look at the living expenses of an applicant. If an applicant is using ‘buy now, pay later’ services more than what they have in their savings, this could be a red flag and lenders could question whether they can afford a loan.”
Services like Afterpay also have the right to report any missed payments on your credit history, which could definitely have a negative impact to your credit score.
3. Don’t put off saving for future mortgage repayments
Before applying for a home loan, a good indication of whether you would be able to afford the monthly repayments on your mortgage is demonstrating the ability to save the amount. This, along with saving for your ten or 20 percent deposit, will put you in good stead for your home loan preparation, and will show lenders that you’re disciplined when it comes to finances.
“One of the best tips for young people, and one they can start doing now, is to start saving for their monthly mortgage payment before applying for a home loan as it shows dedication,” said Ms Giamalis.
Ms Giamalis adds that having a three-month saving history is a great way to prove this to potential lenders.
Here are some friendly financial tools to assist you along the way.
4. Stop gambling and making cash withdrawals
According to Gambling Statistics Australia, 6.8 million Australians participate in some form of gambling each year. This could include activities like buying a ticket in the lottery right through to using gambling apps and visiting casinos. This can present as an obvious red flag to lenders, who will take this into account when deciding to service a home loan application or not.
Another factor to consider is cash withdrawals. If you’re someone who is making regular ATM cash withdrawals per week or per month, this can be a problem as the potential lender can’t track where this money is going. Experts suggest it’s better to have purchases that are traceable.
“Large one-off purchases such as a couch, a new hot water service or a motor vehicle, won’t be taken into an applicant’s living expenses as it’s a one-off meaning the banks will look at that as a discretionary cost,” added Ms Giamalis.
5. Don’t hold onto student debt
One of the key considerations your mortgage broker or financial professional will consider in the home loan application process is paying out any debts you may have outstanding, such as your higher education debt.
It might seem obvious that paying off a HECS debt will strengthen your chances of obtaining a home loan, however, Ms Giamalis says many people often don’t factor in these debts.
“The Higher Education Loan Program (HELP) impacts your borrowing power. HELP debt is a liability that you need to declare in the home loan application process,” said Ms Giamalis.
“The impact of HECS on your ability to get a home loan may vary depending on your income level and the amount of your HECS debt. Seeking financial advice before deciding to pay off your debt is crucial.”
Many are not in the position to pay off their student loans immediately, so this point comes as an additional should you be in the position to do so. This also applies even in light of the Federal Government’s proposal to wipe a reported $3 billion in debt from three million Australians who have HECS debts through indexation changes, essentially capping indexation rate for loans. The proposal is designed to lend a hand in helping young tertiary educated Australians pay off their student loans.
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Consumers are going to gravitate toward applications powered by the buzzy new technology, analyst Michael Wolf predicts