Recent news regarding rent prices in Sydney should interest prospective home buyers and potential investors alike.
For the former camp, data from Australian Property Monitors' (APM) June quarter 2014 rental report indicates now might be the time to make the jump from renter to owner.
"Following a prolonged period of flat rental growth, the median asking rent for a house in Sydney increased by 2 per cent to a new record high of $510 per week," APM Senior Economist Dr Andrew Wilson said.
"Sydney unit rents have continued to rise, now reaching a peak level of $500 per week just below the asking rent for houses. Well ahead of the inflation rate, Sydney unit rents have now increased by 5.3 per cent over the past year and are clearly the most expensive of all the major capitals."
This seems to support a recent research paper released by the Reserve Bank of Australia stating renting a home is essentially as costly as buying one based on real house price growth.
With the current interest rate environment, now could be the ideal atmosphere in which to buy property in Sydney.
However, this data shouldn't just be of consequence to home buyers in the Harbour City. Individuals who have been wondering what the best Sydney property investment might be may want to turn their attention toward units.
With this level of rental growth, it's clear to see that buying in the right area could translate to significant yields. Of course, knowing which areas will offer the best returns is easier said than done.
By working with an experienced Sydney buyers agent, you can make it easier to find both a detached home to leave the rental market behind or a unit that is geared for high investment potential.
Either way, with rent prices rising to such a high level, it appears making a move sooner rather than later is the smart choice.
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