Is the rent actually okay in Melbourne?
Many Melbourne friends are complaining about high rents, but if you learn about rent in other cities, you know Melbourne is a good place.
Sydney tenants have to earn 47% more than their average salary to rent a house, according to the latest Real East data, in order not to put too much pressure on them.
In Canberra, tenants must earn 25% more than the average salary.
These figures give us a glimpse of the housing challenges facing major Australian cities. Families in these places can't afford to buy a house because of high house prices, but if they rent a house, they can save a little.
In Sydney, the median weekly rent is A $540, which means that Sydney's tenants must reach A $1800 a week after tax in order not to spend 30% of their rent.
Sydney's average weekly salary is A $1569 before tax, compared with about A $1222 a week after tax, according to ABS.
Canberra's median weekly rent is A $460, and tenants will have to earn A $1533.33 a week in order not to put too much pressure on them.
What about Melbourne?
Melbourne is better off. The median weekly rent is only A $410, and tenants earn A $1366.67 a week.
In places where jobs are scarce, there is less pressure to rent, such as:
- Adelaide, with a median weekly rent of $340, needs to earn $1,133.33;
- Perth, the median weekly rent is $350, and income needs to be $1166.67;
- Hobart, whose median weekly rent is $360, needs to earn $1200.
For relatives who invest in real estate in the capital cities of the east coast, the income from renting houses is also low.
- In Sydney, House's rental yield was 2.9%, while Unit's was 3.7%;
- In Melbourne, House's rental yield is 2.6%, compared with 3.9% for Unit;
- Darwin is one of the cities with better rental earnings, with House earning 5.7% of its rentals, compared with 6.3% for Unit.
The Realestate figures also reveal a frightening reality that if you only have a minimum income, you can only afford to live in six districts in all capital cities, namely:
- Adelaide's Elizabeth Grove,Elizabeth North and Gawler;.
- Hobart's New Norfolk and Rokeby;.
- Perth's Orelia..
If you receive a minimum wage in Sydney, Canberra and Melbourne, your weekly rent is 85%, 73% and 65% of your salary, respectively.
Well, Melbourne is fine, but it's still a little stressful.
So, friends are still trying to make money! When the salary goes up, the rent won't be a problem.