Love the idea of living in the popular suburbs of your closest capital city, but rent prices are too far out of your reach? Don’t lose faith in renting near your favourite suburb. There are now smarter and cheaper options in choosing a place to live without having to pay top dollar for rent.
Realestate.com.au has recently revealed which suburbs had the highest demand for rental properties over the last twelve months, and then pointed out the surrounding suburbs where renters could live in and save money on their rent.
A New Discovery
Results showed that tenants could save up to $9000 a year on their rental property just by choosing to re-locate to a suburb or two away from the nation’s rental hot spots. Chief economist with Realestate Australia (REA) group and owner of Realestate.com.au, Nadia Conisbee, discussed that renters can get caught up in a hard-to-manage lifestyle that could put them under a great deal of unintended financial stress.
Forget the Popularity Contest
The brand and reputation of a suburb, such as the popular Melbourne suburb South Yarra, is one of the main reasons why people are keen to rent a property there. Conisbee states, “It’s a person wanting to be able to say ‘I live in South Yarra’ which is one of the top suburbs in Melbourne. The reputation of South Yarra is certainly better than Southbank, but you’re effectively paying a $165 a week premium for that reputation and being within walking distance of its cafes and restaurants.”
Although you may have to commit to longer travel time, or you may have to walk an extra five or so minutes to your nearest café and restaurant, making the decision to rent a property a little bit further away from your capital cities’ popular rental locations will be a great way to save yourself a few bucks.
Money Goes a Long Way
Further data from Realestate.com.au found that Brisbane suburb New Farm is one of the most demanding places to rent in Queensland, while across the river, Norman Park, is significantly cheaper. Results show that New Farm’s average weekly rent is around $695 compared to Norman Park which is much less at around $515. Tenants who choose to rent in Norman Park over New Farm will end up saving approximately $9360 after a year of renting.
In Victoria, the top suburbs to re-locate to and save money on rent include Collingwood compared to Fitzroy and Balaclava compared to St. Kilda.
There is no reason why you should feel put off with renting a few suburbs away from your ideal living destination. Those other, ‘less popular’, inner city suburbs should not be forgotten or swept under the carpet. Saving money on rent will be beneficial for you in the long run.