The rental market on the Sunshine Coast is so under supplied that rents are rapidly rising.
In fact, the rental vacancy rate here is the lowest it has been for a very long time.
Multiple applications are the norm for any rental properties that come on to the market, with most rented mere moments after being listed online.
Of course, this is good news for landlords with stronger yields for their properties being achieved.
But the situation is not so good news for tenants who are having to fork out more and more money to secure a property to live in.
That is why, even with the sales market also strengthening, it is generally more affordable to buy a property on the Sunshine Coast than it is rent one at present.
Let’s take a look at some numbers to explain further.
According to the RTA, the median rent for a three-bedroom house on the Sunshine Coast is $490 per week and for a two-bedroom unit it is $410 per week.
However, with interest rates the lowest they have ever been, the cost of money to invest in real estate or to buy a home has never been cheaper.
This means that for a $500,000 mortgage on a $600,000 property, for example, the principal and interest repayments would be just $425 per week.
For investors paying interest only, it would be about half of that amount as well!
So, for less than what you would often pay to rent a house on the coast, property buyers can purchase their very own piece of real estate that they can call home or rent out to an ever-growing number of tenants.
On top of it being more affordable to buy rather than rent, the coast’s rising sales market conditions mean that property buyers have the opportunity for their holdings to increase in value in the years ahead.
It is really a win-win situation at the moment!
So, rather than paying off someone else’s mortgage, would-be property owners can purchase and pay off their own asset with very little change to their current cash flow situation.
If purchasing an investment property, the metrics are even more positive, with the strong rents being achieved resulting in property’s that are often neutral, or even positive, cash flow from the outset.
It doesn’t take Einstein to work out that the opportunity at present to maximise your borrowing capacity with the once-in-a-lifetime interest rates on offer.
Or you could stay renting, and likely soon see the rent you pay continue to increase because of the shortage of properties available.
It’s a decision that bears some serious consideration don’t you think?