Hey there Perth renters! With all the commotion in the rental market, one of the most common questions being asked is “should I build or rent?”. Obviously we love building, but we know there are more factors than just our opinion!
We have answered some FAQs about Perth’s rental market. But if you have a question about renting or building, you can send us an email at firstname.lastname@example.org and we’ll get back to you with an answer.
Why are rent prices increasing?
The main reason rent prices in Perth are increasing is because no one is leaving.
The COVID-19 border restrictions have resulted in more people moving to Western Australia than departing. This includes returning expats and resource workers who remain in the state to avoid quarantine periods. Herron Todd White predict that with domestic borders opening up, there could be 1000 international arrivals a week as our economy continues to perform strongly (we are the only state expected to record a surplus in the 20/21 financial year).
Plus, the rent moratorium will be ending on 28 March 2021. The McGowan Government banned rent increases on existing leases but with this ending, there are predictions that renters will be asked to pay 20% higher.
How bad is this rental shortage?
The word “crisis” is being used a lot. Here’s what the experts are saying:
- The Perth vacancy rate in December 2020 was 0.8%. This is the lowest level REIWA have seen over the past 40 years and equals the previous rate of 0.8% in 2007.
- There were 2,765 properties for rent in Perth on 28 February 2021. For the same time last year, there were 5,371. Yep, that’s nearly half!
- A 2×1 home in Beckenham was listed in January 2021. There were over 800 inquiries from prospective renters!
What are the advantages of building over renting?
Firstly, many tenants will find that it is cheaper to build a new home than to continue renting. Obviously building a new home in Peppermint Grove won’t fall into this category, but as rents increase by up to 20%, mortgage repayments may be the cheaper option.
Secondly, you won’t be at the mercy of your landlord. Here at Move Homes, we experienced an increase in sales before the grants were announced. The main motivation was the uncertainty surrounding tenants and landlord’s rights during COVID-19. While the moratorium provided short-term relief, tenants are now facing the same uncertainty from last year.
Find out more about where you want to live by filling out the form below. One of our team members will reach out and let you know your options!