The Sydney housing market can be hard to break into especially when economic conditions are not at their best.
However, it may be wise to consider the long term benefits of home loans as rental prices continue to rise in the harbour city.
Over the past year the average cost of rent has risen by 5.9 per cent for houses and 5.4 per cent for all units.
In real-terms, this means that weekly rent for a typical house in the city and its suburbs is up to $550 and $513 for units.
In Brisbane and Perth there has been solid rental growth over the past year where houses are up 8.4 per cent and 6.8 per cent respectively.
But prices in Melbourne have remained flat – bucking the national trend, which has seen most rents rise over the last 12 months.
Experts suggest that in the cities of Sydney, Brisbane and Perth there are not enough houses to meet current population demands.
This is leading to a so-called ‘under-supply’ within the housing sector that is pushing up rents in these areas.
Investors may wish to purchase properties in areas that are in high demand among renters in order to benefit from the current housing situation and pay off their mortgages sooner.
