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Leasing with the Help of One Agency Baulkham Hills

2 October 2017

The continuing housing affordability crisis in Sydney has ushered in a shift to alternative dwelling prospects. As more Sydneysiders find that they cannot afford to purchase a home in a suburb they desire, they turn to rental properties.

In recent years, the move from property ownership towards leasing is observable, particularly among the younger generation. It looks to be that apartment and house rentals will remain a big chunk of the real estate market.

Growing Renter Mentality

In Sydney, property prices have shot up to about 10 per cent in the last year. This data was released by the Australian Bureau of Statistics. In an article published by ABC News, Deloitte Access Economics’ Chris Richardson said that young Australians are better off looking into houses for rent, instead of aiming for a home to purchase given the surge in real estate costs in capital cities.

One of Australia’s most respected economists, Richardson gave his two cents to those finding it difficult to break into the elusive property market. “Although there are elements of rental stress—and governments can be involved in helping to do things around that … let’s not forget that rents today make a lot more sense than housing prices,” he said in his speech at at the National Press Club.

Rentvesting in Sydney

The reality is, house prices are not likely to subside anytime soon. As such, many Aussies are thinking outside of the box. Millennials, to be specific, have managed to infiltrate the real estate market through an increasingly popular strategy dubbed rentvesting.

Rentvesting is a tactic in which one rents a home and then invests the remaining capital somewhere else. More young people are thinking “I need a house to rent” in Sydney’s inner east or west suburbs, instead of ponying up for a two-bedroom home with a yard.

Once they have settled for a property to rent, they then look into homes for sale in suburbs that offer a lot more reasonable price tags. Typically, affordable homes can be found in areas that are at least 20 kilometres away from the CBD.

Instant Investment with Granny Flats

People browsing through homes for rent may have likely chanced upon granny flats, a type of second dwelling. Each year, new dwellings built across New South Wales categorised into ‘second dwellings’ are recorded at about 10 per cent. Second dwellings are residences built on a block of land that already houses a residential property.

A report on news.com.au revealed that savvy homeowners are capitalising on the granny flat trend among renters. Thomas Clement, the CEO of Flatmates.com.au, confirmed that the comeback of this traditional housing substitute is motivated by soaring property prices and ongoing affordability crisis.

How Will I Benefit from Renting Out My House?

Should you decide to keep your existing home, you will still have to shell out for mortgage. Then, you would have to borrow more money to buy the new house, upping your total borrowings significantly. What happens is that your mortgage repayments will be greater than if you had gone with selling your property.

When you lease your house, on the other hand, the rental income will prove to be a substantial help in handling higher mortgage repayments. Over time, rent will increase and so will your cash flow.

baulkham hills for lease property

Ready to rent out your current home or invest in a rental property? Partner with the industrious team at One Agency Baulkham Hills. As one of the leading home leasing agencies in the area, we also offer pointers in creating a home lease contract.

To lease a house today, give us a call on (02) 9686 7999 or contact us online on baulkhamhills@oneagency.com.au. Whether you have a studio apartment or a 3 bedroom house for rent, rest assured we’ll make your leasing experience hassle-free.


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