Is it time to up your renting game? The old adage that rent money is dead money has pervaded Australians’ attitudes towards homeownership for decades. With the average house in Sydney now costing 10.9 times average NSW income, a new attitude has crept into the mindsets of many younger Australians: apathy.
A 2017 survey report by Mortgage Choice revealed that from a pool of 1,000 Australian respondents, 87 per cent believed it too difficult to achieve the traditional Australian ideal of owning a freestanding home, while two out of three respondents to research done by EY Sweeney believe rent money is dead money. Could these attitudes be reversed or channeled into healthier financial management for individuals if they reconsidered rent as an expenditure that comes as part of longterm wealth generation rather than money down the drain?
When it takes nine years to save for the average house deposit in Sydney, it is understandable that many younger people feel like they have no option to stay as renters for longer. But this doesn’t have to mean they forgo longterm wealth generation.
EY also modelled the wealth generation between two different scenarios: the homeowner and the renter who invests their money in other forms of wealth generation. In their modelling, EY compared a homeowner’s wealth generation with a renter who placed the savings they made on not having homeownership costs into an ASX200 index fund.
Modelling 43 local government areas in Sydney and looking within a 10 year period, EY found that in 62 per cent of cases a renter who leveraged their savings into an index fund would have been financially better off than homeowners. EY provides the caveat that this fictional renter’s investment profile was of a higher risk than average and their savings measures (budgeting) more stringent than most people are used to. Without being able to leverage that ASX200 investment, EY found that renters were worse off than homeowners.
What this shows is that there is an argument for rental expenditure being effectively similar to mortgage expenditure as long as it is supported by other investments.
So maybe it is time you treated yourself to an upgrade in your rental situation. Using the filter section (see below) on the realestateview.com.au results page when looking to buy or rent, you can find properties that suit what you are looking for in a home. Whether you are looking for a pool, gym or specific timber flooring, using these key terms helps you find the kind of home you are looking for.
Using the filter section to find luxury rental homes available in Melbourne today, here are 10 luxury homes to rent that are worth taking the weekend off to inspect.
Did anyone know that there was a Moroccan oasis in the heart of Melbourne’s CBD? The large light-filled space of the central living room and kitchen for this home lead out to one of the most stunning alfresco rooms imaginable, and right on the doorstep of Little Bourke Street.
This luxury rental is all about its location (opposite the famous Jam Factory), luxury furnishings, such as the freestanding bath, and balcony right in the heart of South Yarra.
Ever looked at those Victorian terrace homes that are undergoing some real modifications and wondered what it would be like to live in one? Now is your chance. The north-facing living room is ideal for letting in light during the day, while the home’s location on the corner of Lennox Street and Highett Street is one of Richmond’s most iconic and sought-after spots.
Certainly the most impressive on the list, this architecturally designed home will have you feeling like you live on the pages of Habitus Living.
Another incredibly designed home, this three-bedroom property in Prahran has had luxury injected into every single facet of the home’s design, from its Oak Chevron flooring to its Miele appliances.
Floor to ceiling sliding doors at the rear of this converted worker’s cottage merge the living room with the secluded courtyard to create a true oasis amid the hustle of Windsor.
Another superbly converted cottage, the clean straight lines of the bathroom, framed by the floor to ceiling window, say it all.
There is something about this newly constructed designer home in Toorak that echoes of London’s Barbican Centre. All it needs is cascading vines overhanging the balcony, which we’ll leave you to grow.
Period homes don’t have to be dark or pokey, as this refurbished 3-bedroom home in Armidale proves. Again, seclusion at the rear is another marker of luxury as a feeling of escape is created so easily.
Perhaps leaving the best till last, why not rent and live on top of the world at the same time? This is in an incredible location on St Kilda Road, with easy access to the city, or with that unimpeded view of the CBD, you can communicate with the office via a flag system and binoculars.