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.
Last week the RBA lifted the cash rate by 50 basis points to 0.85 per cent in its second rise in two months, with more predicted to follow in a bid to slow the rapid rate of inflation. “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 you factor in the borders reopening too, that could further fuel demand for rental places, and we might see more investors moving their properties away from residential tenancies and back to short-term platforms like Airbnb as tourists come back.
“If the investor needs the cash flow to repay 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.”
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Melbourne auctions: Moonee Ponds home sells for $1.54 million post auction as rate rises cause jittersA historic Edwardian home in Moonee Ponds sold for $1.54 million on Saturday after first passing in at auction, with buyers more cautious in their bidding following the second interest rate hike in two months The age uncovered what ?
Source: theage - 🏆 8. / 77 Read more »
Rate rises could hit renters harder than homeownersRenters already face a dire shortage of accommodation, with vacancies at rock-bottom levels. Now it’s predicted many investors will try to pass onto them all the extra cost of having a mortgage. Sue Williams reports And society will let them. Yes doesn't help when you have Dictator Dan still banning over 100,000 people from working with his mandates, he is crippling all industries who need staff and putting so much pressure on the lower end rentals.
Source: theage - 🏆 8. / 77 Read more »
Rate rises could hit renters harder than home ownersIn one of the current housing market’s worst ironies, the people likely to be slugged hardest by the latest interest rate increase are those who don’t actually own property. did you have to threaten someone to publish this information? 🖕 Nope. Interest rates don’t effect rent in any way.
Source: smh - 🏆 6. / 80 Read more »
Interest rates for savings accounts are rising after rate hike, but are they quick enough and by how much?The Reserve Bank's cash rate hike may be doom and gloom for mortgage borrowers, but Inge Meldgaard is hopeful that higher rates will boost earnings from her savings. I opened my first savings account on 1988 and it had a 4.(something) interest rate. I doubt we'll see that very soon. I think everyone is far too leveraged to start really saving and put pressure on banks. 58 cents interest for 4 figures in a savings account while charging me $ 5 to operate the account ! I am no Einstein but I not going to be rewarded for saving anytime soon ! 58 cents interest for 4 figures in a savings account while charging me $ 5 to operate the account ! I am no Einstein but I am not going to be rewarded for saving anytime soon !
Source: abcnews - 🏆 5. / 83 Read more »
Rate rises could hit renters harder than homeownersRenters already face a dire shortage of accommodation, with vacancies at rock-bottom levels. Now it’s predicted many investors will try to pass onto them all the extra cost of having a mortgage. Sue Williams reports And society will let them. Yes doesn't help when you have Dictator Dan still banning over 100,000 people from working with his mandates, he is crippling all industries who need staff and putting so much pressure on the lower end rentals.
Source: theage - 🏆 8. / 77 Read more »