Rate rises could hit renters harder than home owners

Renters already face a dire shortage of accommodation, with vacancies at rock-bottom levels, and now it’s predicted that many investors will try to pass onto them all, or some, of the extra cost of having a mortgage.

“With market conditions so tight, and vacancy rates so low, tenants may not have too many other alternative properties to rent or, if they’d been saving up for a deposit, then it’s now going to be harder for them to buy. And, in the longer term, the higher rate could lead to a fall in the property market and less construction, which could tighten the rental market even further.”

RateCity research director Sally Tindall said in those areas where there are already shortages of rental accommodation, tenants may find themselves “throwing more money at rents” to keep their homes.“I think they could find their rents going up as a result of the rate rise, particularly in areas of Sydney or Melbourne or anywhere across Australia where the rental situation is dire,” she said.

“If the investor needs the cash flow to replay their mortgage, they may be very sensitive to rate rises and want to pass on the extra costs,” she said. “But if they’re already negatively geared, then they might not be so fazed by the rise.“Certainly, those tenants who are coming to the end of their leases will be at greater vulnerability to higher rents.”

FOH!!! Rate rises don't affect RENT, especially if your Landlord owns the property outright! DRAAMMMMaaa

Hold on, do they not have a single dictionary in the Sydney Morning Herald offices that someone could use to look up 'irony'? Really? Is that ironic?

That’s always the case. But landlords can’t raise prices over other properties in the area or they will remain empty. State as if rates are low.

Not good for those who rent

The renting market doesn't make sense. It isn't very competitive and unlike normal businesses you are impacted much less for terrorising your customers. When worst comes to worst, the government has to pick up the slack for landlors because who in society rents property?

Apologise to Rebel Wilson

🤡🤡🤡🤡🤡 APOLOGIZE NOW

Apologise to Rebel Wilson.

APOLOGISE TO REBEL WILSON

Any “real” news you share is overshadowed by your blatant extortion of Rebel Wilson. Your response from BevanShields is laughable. 1,000’s of people read the same article and came to the same conclusion: You Outed Rebel Wilson!

When are you going to talk about how you threatened to out a bi woman?

No credibility on anything until you apologise to Rebel Wilson. BevanShieldsMustResign

In one of journalism's worst ironies, follows no ethical guidelines while extorting and bullying their sources!

In a current trend of trying to cover up the fact they tried to blackmail someone into coming out and then threw a tantrum that the person took their power away. The have again published an article that isn't an apology.

This much is obvious

🖕

Nope. Interest rates don’t effect rent in any way.

did you have to threaten someone to publish this information?

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