It’s Not Simple to Purchase a Home
Many tenants are complaining about the recent letting cost raises across Australia. The hikes have been huge in some regions and it is not rare to find of leases alternating by more than 55% over the last couple of years. It is a situation that has left many individuals suffering to make ends meet.
Exacerbating an already hard state of affairs, potential forecasting point to more pain for renters in the years to come. The first home owners bonus has been responsible for over 50,000 renters taking the dive into property ownership since October last year. Now that the subsidisation is being scaled back, there will naturally be more tenants in the marketplace to increment demand and fuel the next wave of rental price hikes.
Unemployment numbers are also due to grow, which in turn brings more young participants into the rental market. The national emptiness rates are presently below 2%, with this figure due to trim even further over the next years. But small vacancy rates and full demand arent the only causes behind the rent rises. Householders are also being affected with larger invoices such as local government rates and insurances, and tenants are becoming more unreliable with rent payments and correctly keeping the property. Rents need to increment so the land lord can make ends meet. To make topics darker renters will as well need to wait for house & contents insurance
Home owners are often quick to comment that renters should stop whinging about the prices and purchase their personal homes. But this criticism should be directly at the people who have a choice between purchasing and renting, rather than the fighters who have no other choice but to rent. The reality is that while it might seem like a logical and simple thought, it is just not that easy to buy a house this year.
