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In Australia,almost exactly one third of us are renters,with the other two thirds owning homes either with or without a mortgage. Of that third who rent,approximately 60 per cent are aged 35 and under,a significant increase from the late 20th century when many people in this age bracket were homeowners.
A report from the says the rise in renting “has had a disproportionate impact on younger households”,a demographic who are also disproportionately affected by the current cost of living crisis. They’re far more than older generations,partially due to – you guessed it – being renters instead of homeowners.
It can pay to speak up if you’re facing a rent hike.Aresna Villanueva
It’s easy to see why,with rents across Australia’s capital cities up 8.5 per cent compared,with renters in Sydney now expected to cough up a median $770 a week ($589 in Melbourne) for the privilege of having a roof over their head.
What’s the problem?
Overlooking the myriad political,societal,and economic issues that have led to this scenario,one of the main issues renters run up against is the inherent rigidity in the market. Landlords/real estate agents set a price,and renters either accept it or deny it (and often offer to pay more just to secure a place).
Mortgage holders,on the other hand,can shop around,pitting lenders against each other to get better deals and trim costs. In extreme circumstances,they can even get their repayments put on hold or significantly reduced – options renters do not have.
What you can do about it
However,there are some options to try if you’re a renter getting slugged with rent hikes,though,as always,your mileage may vary:
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.