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| Rising Rents and Interest Rates | ||
| Edward S 497347 | 03-Jul-22 03:14 am | |
| In Australia rents are extremely high and interest rates have been low for 9 years now interest rates are rapidly increasing each month resulting in rental property owners massively increasing rents further. I recently heard on the news that in Queensland people who were paying $600 a week rent are now paying just under $ 1200 a week rent due to recent interest rate increases. Rents have always included mortgage interest rates, council rates, and insurance, and many years ago mortgage interest rates in Australia were around 10% meaning rents back then included enough money to cover 10% interest rates, and over the years although interest rates massively decreased the rents DID NOT decrease, instead rents continued to massively increase. Based on the above FACTS, the massive rents we are paying already allow for a 10% interest rate, therefore should rental property owners now be allowed to massively increase rents due to the current interest rate hikes? KEEP IN MIND:- If rents of $600 a week in Queensland have now increased to $ 1200 a week due to interest rate increases those rents will massively increase even further over the next 12 months as the interest rates continue to climb. Based on the above we are heading into a future where millions more people will be homeless because they cannot afford massive rents whilst millions of rental properties sit vacant and rotting because no one can afford to rent them | ||
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