The dream of a white picket fence could
be a thing of the past, with many Australians stuck on the rental roundabout,
according to a report released by realestateVIEW.com.au.
The Housing Sentiment Report –
examining the lifestyle preferences and affordability concerns of buyers and
renters – shows one third of tenants have been in the rental market for
five-plus years, with affordability a major deterrent to entering the market.
The report asked the often
‘forgotten’ property hunters, renters, what is preventing them from buying, and
reveals:
Half of renters believe they can’t afford a deposit
32% believe they can’t afford mortgage payments
28% of renters say they haven’t bought a property because they
can’t afford to buy where they want to live
25% think the market is overpriced
22% believe it’s cheaper to rent
18% have difficulty obtaining finance
16% don’t want to be tied down to one place because of a
mortgage
12% have already
bought an investment property
Investing to get a foot on the property ladder is
proving a more viable alternative for some renters. Of those who have bought
investment properties, 44% say they chose this tactic because they make more
money from the rental income and/ or negative gearing benefits. A further 38%
say they’re renting while investing in cheaper properties because they can’t
afford to buy in the area they want to live.
REIQ
Friday, 16 May 2014