Property prices might be climbing but according to data from the 2016 Census the average mortgage repayment in Australia has actually decreased since 2011.
Census data shows that the median monthly mortgage repayment was $1,800 in 2011, compared to $1,755 per month in 2016. This is a drop of 2.5 per cent.
During the same period, rents have been going up. The median weekly rent was $285 in 2011, going up to $335 in 2016.
These figures show why it is a great time to be thinking about investing in property. While property prices are high in many markets, Australians are still enjoying some of the lowest mortgage rates in history and investors are benefiting from high rental rates.
A big reason why we are probably seeing high rents is because Australia’s population is growing rapidly, and there is a higher proportion of people renting than ever before, with about a third of the population paying a landlord (30.9 per cent).
The proportion of renters has slowly been growing over the years. In 2011, renters made up 29.6 per cent of the population, up from 28.1 per cent in 2006.
High house prices is one of the reasons that people are staying away from buying property and this is having a flow on effect of increasing rental numbers and invariably keeping rental properties in high demand.
It remains to be seen whether this trend will continue in the future, however there is little doubt that it is still a smart time to invest.
The sooner that people can get into the property market, the sooner they can work towards paying off their mortgage and having a future free of making either rental or mortgage repayments.