Rental roundabout

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.


Friday, 16 May 2014

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