Higher rents may signal time to compare home loans

Tuesday 01 December 2009

Article by Mozo

Higher rents predicted for next year may prompt people to compare low interest home loans.

An AAP report drew on statistics published by the Residential Property Prospects study from BIS Shrapnel.

It stated rents are expected to rise by as much as 5.8 per cent annually for the next three years.

According to the group, if the predictions come to fruition, landlords could be taking as much as a cumulative $1.9 billion in lease charges between 2010 and 2012.

Pressure on the market, such as an influx of first-time buyers, was identified as one of the factors leading to low levels of property availability and construction.

BIS Shrapnel senior economist Jason Anderson said housing supply has "plunged", despite strong demand.

"With the very low rate of medium and high-density dwelling construction in 2009, it is inevitable that rental markets will tighten considerably in 2010, and remain very tight in 2011," he remarked.

Meanwhile, houses have been found to be getting larger over the past decade.

This is according to CommSec, which conducted research that revealed Australia as the nation with the biggest properties, which could be good news for home loans customers.

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