There are premium places to live in every city of Australia, where the rent is high. Yet despite the high cost of living, so many people are still willing to live in these locations. But did you know you could save anywhere between $30,000 and $50,000 in rent if you choose to live in a slightly less popular area, which is still the same distance from the central business district as other premium locations?
In most cases, if you managed to save over $50k, you will have enough money for a home deposit. However, the truth of this is that this amount is higher than what most people make in one year. Canberra, Perth, and Sydney are the main cities in Australia that have a huge price difference when it comes to renting a house. The value of rent on the east side of Sydney has always been higher as compared to the prices on the west side. In Perth, it’s almost no surprise that the trend is opposite. You can find suburbs with high rental charges in the west. As for Canberra, the prices dramatically vary in the north and south region.
If you look at other cities, the price difference is not so prominent, but living there might allow you to save a bit more cash. To get a better idea of how you can save money in these regions, it is important to learn more about them.
The suburbs on the north side of Canberra are in high demand. Both renters and buyers prefer to find a place in these areas. Yet if you are planning to move from the South, you will be able to save a lot in just one year.
For example, the distance between Lyneham and central business district (CBD) is the same as that of Forrest and CBD. But if you could save around $34k in rent if you get a house in Lyneham.
In Perth, the suburbs on the west side are very costly; Peppermint Grove is one of them. In fact, it is one of the highest priced places in Australia. The rent is around a thousand dollars a week.
But if you look for a house on the east side, you could save a lot of money. Noranda, Morley, and Bassendean are some of the places on the east side where you can find a house for rent at $350 a week. These may not be high-status areas, but you will be able to save up to $34k every year if you get a place in any of these suburbs.
Similarly, if you shift to Bentley from Churchlands, or to Belmont from Mount Claremont, you could save up to $20k a year. These are very decent savings and will be very helpful at the time of putting down payment for your own house.
Most people living in Sydney love the ocean and beaches. This is the reason why they prefer to rent a place in suburbs like Northbridge, Balgowlah Heights, and Tamarama, and Bellevue Hill. Rent of a normal house is around $1,000 a week. If you are planning to find a place close to a beach, the rent will be relatively higher.
However, you can always find a place near harbours and beach in a less popular area, which is also close to the CBD. For example, the distance of Bellevue Hill from CBD is the same as that of Leichhardt, but the rent is not so high in the latter. Although Leichhardt is not near the harbour, it is near Rozelle Bay and Parramatta River. By finding a place there, you will save around $67k in rent.
There are so many reasons why the rent in some suburbs is lower as compared to others. For example, these places may not have enough schools or if there are any schools, they may not provide quality education. Similarly, some places might not have enough facilities.
No matter what the reason is, it boils down to your personal and financial preferences. If you do not have kids or plan to buy a house in the near future, it is better to find a property in an area where the rent is cheaper.
Speak to Hunter Galloway today about our money saving strategies.