Weekly rents may rise by up to $100 over the next two years, The Investors Club has warned.
According to The Investors Club President Kevin Young, should interest rates rise landlords will have no choice but to pass on the increased cost of mortgage repayments to tenants.
An increase to rents will further restrict the ability of first home buyers to save a deposit and enter the property market – highlighting the need for alternative products and increased focus on educating borrowers on solutions outside traditional mainstream mortgages.
“If interest rates continue to rise, then there is every likelihood that the average weekly rent for properties in capital cities – which is now around $300 per week – could rise by more than 30 per cent during the next two years, to around $400 per week,” he said.
The Investors Club manages more than 10,000 investment properties throughout Australia on behalf of its members.