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In Sydney, is renting a home cheaper than buying?
04/11/08 09:45 Filed in: News
Hi Everyone!
At Corum Real Estate Services I am constantly telling anyone and everyone (who will listen, of course!) that we are passionate about property management. While everyone’s sales departments seem to get all the attention (and the glory), we are continually pointing out how important and valuable property management is. After all, most property managers are responsible for managing multiple millions of dollars in property assets - and are responsible for the health and well being of the most tangible asset in the real estate office - the rent roll.
But is property management about to take a a real “front seat” due to the fact that in some areas (eg Sydney), renting a home for most of us is cheaper than buying one? There was a short article this week in the Sunday Telegraph on October 26 by John Edwards - who is also CEO of Residex. Its clear that the “great Australian dream” of owing and living in your own home may have changed. Part of his article reads:
“......There is no doubt that renting is cheaper - a typical Sydney home will cost around $385 per week less to rent than to pay off with a 20% deposit and an 8% mortgage rate. Most people eligible for first home buyer’s grants could not afford the typical Sydney property as it would take about 48% of their income to service the loan. The best families could probably hope for is a home purchase of $350,000. On the other hand, the best rental property they could afford would be the typical Sydney home. It is clear in the sort term the decision is about quality of life. The longer term perspective is about the future. Rents are actually at historically low rates, less than half what they have been in the past, and rents rose by around 10% in the last year.....”
I’d be interested in your comments which you enter underneath this post on the website!
I think this also highlights another important point for property managers - your tenants could also become future clients or maybe even one of your best referral sources for growing your rent roll. These days a lot of tenants are landlords/ landlords are tenants under the assumption that people are buying investment properties where they can afford to and then renting somewhere they actually want to live. So the message is - provide your tenants with better customer service than your competitors. You never know when one of them, or one of their associates might be shopping for someone to manage their investment property!
This bunch of handsome fella’s in the photo above are the marvelous men of Corum, who are all supporting “Movember”. We have entered a team called “Branded ‘Mo’s” to raise money in support of this charity.
For those of you that aren’t aware, “Movember” is now an annual event held in support of Men’s Health issues. It’s primary beneficiaries are the Prostate Cancer Foundation of Australia and Beyond Blue.
Meanwhile, the ladies in the office will have the very difficult task of judging the best ‘mo at the end of the month.
Our guys would love your support -- for a very worthwhile cause. All donations are of course tax deductible and accepted directly by Movember by clicking button below:
Some our guys are so keen to do a good job of ‘mo growing for charity (not talking about you of course, Joey) - that there has been some talk about using “performance enhancing” substances to grow a ‘mo in a shorter space of time. Apparently if you put “Rogaine” on your top lip, it can have a similar effect to where you should normally put it. I’m not too sure about this as a strategy, but it is all in the name of charity I guess!
And yes... I will be publishing an “after” shot, with the result of our total fundraising efforts in about 4 weeks time. By then all our blokes will probably look like various versions of John Newcombe in the ‘70’s. A frightening thought when you count that there are 14 of them in total participating! This month is certainly going to be hairier than usual.....
Have a great week!
Sam
At Corum Real Estate Services I am constantly telling anyone and everyone (who will listen, of course!) that we are passionate about property management. While everyone’s sales departments seem to get all the attention (and the glory), we are continually pointing out how important and valuable property management is. After all, most property managers are responsible for managing multiple millions of dollars in property assets - and are responsible for the health and well being of the most tangible asset in the real estate office - the rent roll.
But is property management about to take a a real “front seat” due to the fact that in some areas (eg Sydney), renting a home for most of us is cheaper than buying one? There was a short article this week in the Sunday Telegraph on October 26 by John Edwards - who is also CEO of Residex. Its clear that the “great Australian dream” of owing and living in your own home may have changed. Part of his article reads:
“......There is no doubt that renting is cheaper - a typical Sydney home will cost around $385 per week less to rent than to pay off with a 20% deposit and an 8% mortgage rate. Most people eligible for first home buyer’s grants could not afford the typical Sydney property as it would take about 48% of their income to service the loan. The best families could probably hope for is a home purchase of $350,000. On the other hand, the best rental property they could afford would be the typical Sydney home. It is clear in the sort term the decision is about quality of life. The longer term perspective is about the future. Rents are actually at historically low rates, less than half what they have been in the past, and rents rose by around 10% in the last year.....”
I’d be interested in your comments which you enter underneath this post on the website!
I think this also highlights another important point for property managers - your tenants could also become future clients or maybe even one of your best referral sources for growing your rent roll. These days a lot of tenants are landlords/ landlords are tenants under the assumption that people are buying investment properties where they can afford to and then renting somewhere they actually want to live. So the message is - provide your tenants with better customer service than your competitors. You never know when one of them, or one of their associates might be shopping for someone to manage their investment property!
This bunch of handsome fella’s in the photo above are the marvelous men of Corum, who are all supporting “Movember”. We have entered a team called “Branded ‘Mo’s” to raise money in support of this charity.
For those of you that aren’t aware, “Movember” is now an annual event held in support of Men’s Health issues. It’s primary beneficiaries are the Prostate Cancer Foundation of Australia and Beyond Blue.
Meanwhile, the ladies in the office will have the very difficult task of judging the best ‘mo at the end of the month.
Our guys would love your support -- for a very worthwhile cause. All donations are of course tax deductible and accepted directly by Movember by clicking button below:
Some our guys are so keen to do a good job of ‘mo growing for charity (not talking about you of course, Joey) - that there has been some talk about using “performance enhancing” substances to grow a ‘mo in a shorter space of time. Apparently if you put “Rogaine” on your top lip, it can have a similar effect to where you should normally put it. I’m not too sure about this as a strategy, but it is all in the name of charity I guess!
And yes... I will be publishing an “after” shot, with the result of our total fundraising efforts in about 4 weeks time. By then all our blokes will probably look like various versions of John Newcombe in the ‘70’s. A frightening thought when you count that there are 14 of them in total participating! This month is certainly going to be hairier than usual.....
Have a great week!
Sam
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