Rental Properties Sydney
Rental properties Sydney - about 30% of the dwellings in this city are rented.
The weekly costs for renting a property in Sydney are much higher than similar costs across Australia.
Not that the median rent would give you too much information. It is only the middle number in a row of very different rental amounts for different types of housing.
But the comparison does. It indicates much stronger demand for a Sydney rental property than for accommodation in other Australian cities.
Sydney Rental Market
When we arrived in Sydney there were plenty of homes to rent at good weekly rates. Sydney was in the middle of a strong housing boom.
With low interest rates and plenty of jobs available, people were committing to increasingly higher mortgages and, with lower deposits, paying for mortgage insurance. They were buying houses and moving out of rental properties.
And were driving house prices up. Plus there was a lot of construction going around, plenty of new apartments being built.
But interest rates started to rise and mortgages started to become less and less affordable. New developments stopped. And the dream to own a house became just that ...a dream.
Renting was the way to go. From strong buyer interest the market shifted to strong tenant interest.
Then rental vacancies dropped to historic lows. And still are.
Demand for rental properties Sydney wide was so great that whenever real estate agents were advertising an "open house" people were showing up in droves.
And competing with each other to offer a better price, often higher than the one advertised. Just to secure a place to live.
But market keeps moving. With the GFC and lower interest rates, experts said that it was cheaper to buy than to rent.
Not anymore, rates are rising now and house prices too. However people continue to buy. Which means it may be easier to find a rental property in Sydney.
Rental Properties Sydney, Where Do Recent Arrivals Live?
The Census in Australia shows that Sydney has the largest proportion of recent migrants from all Australian capital cities.
Over a third of the population in the city centre and inner Sydney suburbs, such as Ultimo and Haymarket, are recent arrivals to Australia.
A bit further away, in Parramatta and surrounding suburbs, it's one in 4 residents.
The inner ring of Sydney (suburbs that are the closest to the City) has the largest proportion of properties that are rented - almost half of all dwellings. The middle ring follows with about one third.
If you have recently arrived to Sydney you may want to know what to look for when you search for a rental property.
Rental Properties Sydney - Some Factors to Consider
- If you don't know where you will be working, try to find a rental property that is close to the rail. Not too close though. You don't want to hear the noise at all times. 10 - 15 minutes walking distance to the station is fine. It will help maintain a healthy lifestyle and avoid searching for a spot to park your car in the morning. Proximity to any public transport is good. But rail can make your life easier, especially at the beginning when everything is new for you.
- If you have kids, look for a place close to schools.
- Go for a unit if you don't like gardening. Otherwise check your tenancy contract to see if rent for the house includes garden maintenance. If it doesn't, buy a lawn mower.
- And check to see who pays for water. Normally it's you, the tenant who pays for utilities. You have to set up all utilities in your own name: electricity, telephone / internet, gas. With water, it's a bit different. There are two charges:
- One is the service charge for having water available at the property. The landlord pays this charge.
- The other is for the quantity of water used. If the property has an individual water meter then the owner can pass this cost to you.
Rental Properties Sydney - Location and Rents
Rents can vary with looks and condition of the house, quality of appliances, proximity to shopping areas or transport.
But probably location is the factor that can make or break the budget.
Take a map of Sydney and draw 3 rings. The inner ring, within a 10 km radius of the city of Sydney, or the CBD commands higher rents, the middle ring which covers the next 10 km is a bit more affordable. Then go for the outer ring for cheaper options.
With a number of new suburbs that have appeared recently in Sydney's outer ring, you may find a brand new house at an affordable weekly rent.
Here are more tips about rental properties in Australia. Once you are satisfied with what you found apply for tenancy.
Good luck with your search for a rental property in Sydney.
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