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NTTHE Northern Territory may be among the most affordable jurisdictions to own property, but it is the worst place to rent.

The Real Estate Institute of Australia figures reveal that 28.5 per cent of the family income goes towards meeting the average rent payment – the highest rate in the country.

The next highest is New South Wales at 27.3per cent.

The national average is 25.1 per cent.

The cheapest place to rent is the ACT, where only 16.5 per cent of the family income is needed.

The most expensive house rents in Darwin are in the inner city, with a three-bedroom property rising 3.3 per cent in the past year to $723 a week.

These figures are backed up by recent RP Data figures, which showed the national rental market remained stagnant during the September quarter – with median rents at $350 a week.

And while Darwin’s market did not increase in that time, rents were still the most expensive in the country.

The median rent for a house was $520 a week, while units were $430. Analyst Cameron Kusher said recently that the slowdown in the rate of rental growth was linked to the drop in interest rates during the global financial crisis and the boost of the first home owner’s grant.

“Both initiatives, coupled with softening property values during 2008 and consistent growth in rental rates during recent years, resulted in a significant boost to affordability for first-time buyers,” he said. “As a result, in 2009 first home buyer activity was at its highest level on record.”

He said with first-time buyers mostly coming from the rental market, it was no surprise to seethe rate of rental growth slow down.

Story by Nick Calacouras www.ntnews.com.au

Tags: investment, market, property, real estate, rent, rentals

View the original article here

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