Despite the continuous surge in prices and the never-ending fluctuation of supply and demand, one thing remains constant: the Apple Isle’s rental properties are the current ‘apple of the eye’.

In the recent Real Estate Institute of Australia’s (REIA) March quarter Housing Affordability Report, Tasmania’s rental market was found to be Australia’s least affordable property when the proportion of income required to meet a median rental payment requirement (30.6%) was assessed.

According to Abbey Berry, Director of Property Management at 4one4 Property Co., the influx of renters into the market plays a big role in this result. “I believe there have been changes in the basic requirements which has certainly brought a lot more people to our state, so there’s more people who need a house,” she explained.

In figures, Tasmanian homeowners need to allocate 31.5% of their income to pay their mortgage. When compared to the data on the recent quarters, the numbers are rising through time. In the December quarter last year, loan payments in Tassie required 30.9% of income and it was 29.7% in March 2020.

To date, “the median weekly family income in Tasmania was lower than every other state at $1538. The difference between Tassie and other states ranged from $263 less than Queensland to $1316 (ACT).”

Along with these data, REIA President Adrian Kelly stressed that there has been a decline in terms of properties’ affordability. In fact, he mentioned how the number of first-home buyers decreased by 9.5% over the quarter, but annually, the figure was heading upward substantially with 37.3% growth.

Abbey agreed that first-home buyers and younger people have financial constraints in securing a property. “I also think the sales price of houses is less affordable for younger people to get into the housing market, so they’re having to rent for longer; hence, they’re staying in the rental market for longer than they have been previously.  And of course, the supply and demand: more people, less houses,” she said.

In spite of these figures, a new report this June from realestate.com.au concluded that Tasmania garnered its all-time highest views per listing. Demand was around 2,600 views per listing–higher than anywhere in Australia. The Apple Isle also recorded its largest year-on-year increase in views per listing with a 72.4% change compared to 2020.

Without a doubt, people are still interested in the properties that Tasmania can offer despite the surge in property prices. Among a lot, Abbey shared some of the advantages in investing a property in the state:

 

“For investors, there are a lot of positive things when you’re looking at investing in a property. We have low vacancy rates, we have low days in the market, we have high rents, and obviously, we have more people looking and viewing properties here.”

 

She also mentioned how the state is becoming more well-known which means that the economy will continuously grow in the area. So, for those who want to secure a rental property in Tassie, but are currently experiencing affordability issues, Abbey has some tips and tricks for you that you can try.

Choose a much cheaper suburb

In choosing a place that you would want to stay in, it’s wise to consider its overall style that would fit your lifestyle and its accessibility to key services. But more than those, you still need to check if it meets your financial situation. There are certain suburbs which are cheaper than others, so you need to go through thorough research to find the best property, situated in an area that perfectly suits you and your financial plan.

Look into sharing accommodations

Property prices can really be relatively higher depending on people’s financial capacity. How about looking for someone whom you can share the finances with? A lot of family and friends, nowadays, consider doing this which really helps in reducing the cost of the rent. Plus, more people, more fun! You’ll spend living with people you know the most, with less stress in terms of your budget.

Make sure you have a strong application

Ensure that all information needed is indicated in your application for faster processing. This can also help property managers to get back to you quicker in terms of the specifics that are needed to be settled. They can also help you find the property that’s most suitable for you. Long story short, help them help you.

Avail housing organisations’ programs

Finding an affordable private rental home is a significant issue for many low income Tasmanians. Good news! There are some private and government organisations that can help out in paying for the rent of the tenants. Research is always key in this process to find these organisations that can be beneficial in your renting procedure. You may ask assistance from groups such as Housing Connect to support you in your housing needs, or you may also avail Private Rental Assistance, Private Rental Incentives, and a lot more.

Even Though Tasmania’s rental properties have increased prices over time, the demand for quality housing has also been increasing. No doubt, investors and renters are continuously looking for the best property that they can secure in the state.

If you want us to help you find the best property for you, give our Team at 4one4 Property Co. a call and we’ll start your property journey from there! (*wink)