Covid-19 leads to fall in rent prices: Is now the time to move and save?

As well as travel bans and increased unemployment, the Covid-19 pandemic has also led to a dramatic rise in the number of vacant properties across Australia. According to SQM Research there were over 20,000 more vacant homes in May 2020 compared to February 2020*.
The combination of more homes available to let and less renters willing to move right now has led to a decrease in rent costs. This is especially the case in Australia’s most populated cities, Sydney and Melbourne.
So, is now the time to move and lock in a cheaper rental?
Savings for Aussies not in a fixed-term agreement
First of all let’s be clear: if you already have a lease then it isn’t worth breaking it for a cheaper rental. Getting out of a fixed-term tenancy agreement early will not only cost you more, but will also leave a mark on your rental history.
The potential savings to be had from jumping on a cheaper rental are only really available to those who are not currently in the middle of a lease agreement or who live in the family home and are thinking about flying the coop.
Rents drop in trendy suburbs, from Bondi to St Kilda West
So just how dramatically have prices decreased? Well, of Australia’s eight major cities, weekly rental costs have dropped significantly in Sydney, Melbourne and Hobart in the last financial quarter.
SQM’s data shows that the number of vacant rentals in Sydney rose by nearly 8,000, between February and April alone, with average weekly rents for houses and apartments falling by approximately 8.8% and 4.3% respectively.
Average weekly rents for units in Sydney’s backpacker hotspot Bondi fell by a significant $100 between the beginning of January and May, while in Melbourne’s sought after St Kilda West, the average weekly rent for a three bedroom house dropped dramatically from more than $1,000 to just over $700.
What to consider when moving
While improving your long term savings is a pro, there’s a lot more to consider before packing up your stuff and shipping out.
Moving itself can be a stressful business as you have to sort through all of your belongings and hire a removalist or a truck. Not to mention that you need money for a security deposit and to have your services connected, including electricity and internet.
So, before you make the decision to go for a cheaper rental, think about whether you are financially stable enough to handle a move right now. For example, do you have an emergency savings fund? Is your job secure enough at this moment in time?
If you are not currently tied to a lease agreement, you have the means to move and you feel confident enough in your financial stability, then it might not hurt to pounce on a cheaper rental now. Or if you’re not so keen on the idea of moving, you could even try asking your real estate agent for a rent reduction, especially if prices have gone down in your area.
Not sure what to do with your long term savings? Why not put them in a high interest savings account? You can check out interest rates on our savings account hub or take a look at the accounts on offer below.
*SQM Research gathered on 29 May 2020, correct as of 28 May 2020.
Compare high interest savings accounts - last updated 14 May 2022
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Mozo experts choice awards won:
- Young Adult Savings - 2022
Life - 18-29 years old
Maximum rate
standard interest rate
Govt Deposit Guarantee
2.00% p.a. (for $0 to $30,000)0.15% p.a.(for $0 and over)Yes up to $250,000Make 5 card purchases/month with a Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.
Earn up to a generous 2.00% p.a. variable interest on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30k.
CompareCompareLife - 18-29 years old
Earn up to a generous 2.00% p.a. variable interest on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30k.
- Maximum rate
- 2.00% p.a. (for $0 to $30,000)
- standard interest rate
- 0.15% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Make 5 card purchases/month with a Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must hold a Westpac Choice transaction account. If 5 card purchases are made each month, but savings account balance hasnt increased, a 1.75% interest rate still applies.
Read our Mozo Review to learn more about the Life - 18-29 years old
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Mozo experts choice awards won:
- Best New Savings Account - 2022
Boost Saver with Go Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.00% p.a. (for $0 to $250,000)0.05% p.a.(for $0 and over)Yes up to $250,000Bonus rate of 1.00%. Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.
Enjoy a high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 20,000 bonus Virgin Money Points (ends 31/05/22. Offer criteria & T&Cs apply).
CompareCompareBoost Saver with Go Account
Enjoy a high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 20,000 bonus Virgin Money Points (ends 31/05/22. Offer criteria & T&Cs apply).
- Maximum rate
- 1.00% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus interest 1.00% only applies when you deposit $2,000 into your Go Account and make 5 debit card purchases, direct debit or BPAY payments in the previous month. If you are between 18 and 25 you need to deposit $1,000 and fulfil the other criteria.
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Bank and savings account only accessible through iOS or Android app.
Read our Mozo Review to learn more about the Boost Saver with Go Account
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Mozo experts choice awards won:
- Regular Saver - 2022
- Kick Start Savings - 2022
- Everyday & Savings Bank of the Year - 2022
Savings Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.35% p.a. (for $0 to $250,000)0.95% p.a.(for $0 to $250,000)Yes up to $250,000Bonus variable rate is available for the first four months.
Introductory variable rate of 1.35% for first 4 months (on deposits up to $250,000). Ongoing variable rate from 0.95%. No account keeping fees to pay. Multiple 2022 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Introductory variable rate of 1.35% for first 4 months (on deposits up to $250,000). Ongoing variable rate from 0.95%. No account keeping fees to pay. Multiple 2022 Mozo Experts Choice Award winner.
- Maximum rate
- 1.35% p.a. (for $0 to $250,000)
- standard interest rate
- 0.95% p.a.(for $0 to $250,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first four months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Savings Account
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Mozo experts choice awards won:
- Regular Saver - 2022
- SMSF Savings Bank of the Year - 2022
AMP Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.35% p.a. (for $0 to $250,000)0.10% p.a.(for $0 to $5,000,000)Yes up to $250,000Minimum deposit of at least $250 in the previous month.
An ongoing total variable bonus rate of up to 1.35% per annum will apply each month if you deposit $250 in the previous month. Available only on balances up to $250,000. AMP Bank, winner of the Mozo Experts Choice Awards 2021 in the Savings category.^
CompareCompareAMP Saver Account
An ongoing total variable bonus rate of up to 1.35% per annum will apply each month if you deposit $250 in the previous month. Available only on balances up to $250,000. AMP Bank, winner of the Mozo Experts Choice Awards 2021 in the Savings category.^
- Maximum rate
- 1.35% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 to $5,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing total variable bonus rate of up to 1.35% per annum applies if customers deposit $250 in the previous month. Available only on balances up to $250,000.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Ongoing total variable bonus rate of 1.35% p.a. is earned on your account balance the month after you deposit $250 and is paid the following month. Available on balances up to $250,000. Maximum balance per customer name is $5,000,000.
Read our Mozo Review to learn more about the AMP Saver Account
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Mozo experts choice awards won:
- Best New Savings Account - 2022
Boost Saver with Go Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.35% p.a. (for $0 to $250,000)0.05% p.a.(for $0 and over)Yes up to $250,000Bonus rate of 1.35%. Deposit $2,000 each month, make 5 eligible payments from your Go Account and enable the Lock Saver feature. If you are between 18 and 25 deposit $1,000. 32 days notice for withdrawal and T&C's apply.
Enjoy a high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 20,000 bonus Virgin Money Points (ends 10/4/22. Offer criteria & T&Cs apply).
CompareCompareBoost Saver with Go Account
Enjoy a high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 20,000 bonus Virgin Money Points (ends 10/4/22. Offer criteria & T&Cs apply).
- Maximum rate
- 1.35% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus interest 1.35% only applies when you deposit $2,000 into your Go Account and make 5 debit card purchases, direct debit or BPAY payments in the previous month and enable the Lock Saver feature. If you are between 18 and 25 you need to also deposit $1,000. 32 days notice for withdrawal and T&Cs apply.
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Bank and savings account only accessible through iOS or Android app.
Read our Mozo Review to learn more about the Boost Saver with Go Account
^See information about the Mozo Experts Choice Savings Account Awards
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