New Census data looks good for investors
Are you looking to invest in property? You might be interested to hear that according to new Census data, rents have increased and mortgage repayments have decreased in the last five years, making property investment an attractive option.
Many people in Australia have a mortgage, and people are paying less per week for their mortgages, according to Census data. In 2011, we paid a median monthly mortgage repayment of $1,800. But in 2016, we paid a median repayment of $1,755 per month. That’s down by 2.5 per cent.
While mortgage repayments have gone down in the last five years, rents have gone up. In 2011, the median weekly rent was $285. In 2016, the median weekly rent was $335. This makes investing in property even more attractive.
You might be looking to occupy your house, to avoid paying higher rents. But if you are looking for renters, this won’t be a problem. The Australian population grew by 1.9 million in the last five years, and a larger proportion of people are renting than ever before.
This could be because there is a demand for housing. As the population rapidly increases and becomes older, housing affordability remains an issue. Invariably, more people end up renting.
Cities are growing faster than regional areas. Sydney remains the largest city. But Melbourne has grown faster in the last five years, and is catching up. Darwin is the fastest growing city, and 44 per cent of Darwin’s population are renting. Brisbane and Sydney also have a high proportion of renters.
You might be looking to invest in a separate dwelling. But you might be interested to know that people have moved closer together in the last five years. Most people still live in separate dwellings, but a larger proportion of people live in semi-detached houses, flats, rows and apartments than they did five years ago.
Whether you are investing in a property to occupy or to rent, you’ll be pleased to know that the average Australian income has increased in the last five years. The median weekly household income increased from $1,234 in 2011 to $1,438 in 2016.
With mortgage rates decreasing and rents and income increasing, population increase and demand for housing, there has never been a better time to invest in property.