You Might Struggle to Buy a Home
Numerous tenants are complaining about the new rental cost hikes across Australia. The boosts have been wide in some regions and it is not rare to see of rents jumping by more than 45% over the past couple of years. It is a position that has left numerous renters scrambling to pay all the essential bills.
Deterioration an already wrong state of affairs, coming predictions detail more pain for renters in the years to come. The first home buyers bonus has been responsible for over 70,000 renters taking the dive into real etsate ownership since October last year. Now that the grant is being scaled back, there will naturally be more tenants in the market to increment demand and fuel the next wave of rental price hikes.
Unemployment figures are also anticipated to rise, which in turn gets more new players into the rental market. The national vacancy rates are presently below 2%, with this number anticipated to contract even further over the next years. However low vacancy rates and high demand arent the only grounds behind the rent rises. Homeowners are also being hit with larger invoices such as local authorities rates and insurances, and tenants are becoming more loose with rent payments and correctly keeping the property. Rents need to increment so the investors can make ends meet. To make topics harder renters will also want to look for house insurance companies
Land lords are often quick to comment that renters should stop whinging about the prices and purchase their own homes. But this criticism should be directly at the people who have a choice between buying and renting, rather than the battlers who have no other choice but to rent. The reality is that while it might seem like a logical and simple idea, it is just not that easy to purchase a house presently.
