Rental costs 'are on the rise'

Aussies may be more inclined to compare home loans and purchase a property after recent figures indicated that the cost of renting is increasing.

The Australian Property Monitors' (APM) Rental Price Series quarterly report found that unit rental prices across the country increased by 2.3 per cent, while national house rentals rose by 0.1 per cent, reports

Dr Andrew Wilson, senior economist for APM, asserted: "Renters should prepare for significant growth in rental prices throughout 2011."

Among the factors he attributed the rise in price to were "accelerated economic activity" and the shortage of properties in the country.

He noted that in cities, the price of renting a unit has risen significantly because of the low vacancy rates and stiff competition for accommodation.

Those hoping to avoid paying high rental costs may want to compare home loans online to try and secure finance to get on the property ladder.

According to ABS and Proprate, the speed with which property prices are increasing is slowing, news that may be another encouraging factor for prospective buyers.

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