Commercial Real Estate

Commercial Real Estate Connect When the real estate market goes crazy, the ‘home owner’ may be the first to suffer

When the real estate market goes crazy, the ‘home owner’ may be the first to suffer



When it comes to the housing market, the key factor is that you don’t live in your home, it’s where you rent out your home and how long it takes to get your mortgage payments.

That’s what many homeowners have to worry about when their property goes up in value, with one in five homeowners paying more than the mortgage repayments for their property.

But, according to the research from Domain Finance, if you live in a property with a home equity interest, that can lead to significant stress for those living in rental accommodation.

The study looked at the average rent paid by households renting out their property, and found that the median annual rent paid in Sydney was $3,634 in 2016.

The researchers then took the average rental income and calculated how much each household would have to pay in rent to get that amount, based on the average house price in Sydney.

If the average home was worth $200,000, then each person in the family would need to pay $12,071 to $15,099 per year to cover their mortgage repayings.

However, if the average price of a house was $100,000 or less, the number of people who would need more money in order to pay the full mortgage payment could be even higher.

“We have the lowest rate of rental accommodation accommodation in the nation, and that’s partly due to the low level of property ownership and also due to what we call ‘home ownership stress’ in the rental market,” Domain Finance CEO of research David Miller said.

“In particular, we’ve found that it’s the first property owners to suffer from home ownership stress, and if you’re a rental property owner it’s probably your first property that’s going to need some help.”

The study also found that housing affordability is a significant issue in Sydney’s inner west.

According to Domain Finance’s research, about a third of households in the inner-west had a mortgage and about 30 per cent of them were renters, and about a quarter of those people were renting out the property.

Mr Miller said if you were in a rental home and the rental income was $500 a week, you would need about $2,000 a year to pay for rent.

“If the rental rate was $250,000 that means the median income of renters would need $2.5 million to cover the mortgage payments,” he said.

However that was still less than half the average annual income for the outer-west region.

Mr Johnson said it was important to keep in mind that renting out a property was not necessarily the same as paying rent.

He said the issue was more complicated than a simple monthly rent, and there was also the issue of how much mortgage you had to pay.

“You don’t pay rent to the mortgage company, you pay it to yourself,” Mr Johnson said.

Topics:housing,business-economics-and-finance,housing,housing-industry,rental-property,australia

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