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To move or not to move: is it cheaper to find a new place or stay when your rent increases by 10%?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a> and <a href="https://theconversation.com/profiles/sara-quach-175976">Sara Quach</a>, <a href="https://theconversation.com/institutions/griffith-university-828">Griffith University</a> Your landlord has just raised your rent by 10% and your mind starts running the numbers – should you cop it sweet or look to move? It’s a familiar scenario in today’s unpredictable housing market. Understanding the real costs of staying versus moving is essential for making informed choices: renters must consider hidden expenses such as moving costs, deposits and changing rental rates, giving them tools to handle rising rent pressures more effectively. <h2>A grim time for many renters</h2> National median market rents have hit record highs, reaching $627 per week, with an average annual growth rate of 9.1% during the past three years, according to real estate giant <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/Budget/reviews/2024-25/Housing#:%7E:text=Based%20on%20April%202024%20CoreLogic,the%20past%203%20calendar%20years">CoreLogic</a>. <a href="https://www.corelogic.com.au/news-research/news/2024/rent-growth-picked-up-in-the-start-of-2024,-taking-rents-to-new-record-highs">CoreLogic</a> also reported annual rental changes (houses and units) in regional Australia are not far off from the big cities: annual rent changes were 9.4% for combined capital cities, 6.4% for combined regional areas, and 8.5% nationally. So, is it better to stay or move if your rent is raised by 10%? Let’s examine the costs and benefits of each option. <h2>A breakdown of typical moving costs</h2> We’ll start with the most obvious expense: moving costs. Professional moving services aren’t cheap. For example, moving a three-bedroom house in the Gold Coast costs <a href="https://www.muval.com.au/removalists/gold-coast">$1,095.25 on average</a>, with an hourly rate of $158.26. In a bigger city like Melbourne, the cost is slightly higher at <a href="https://www.muval.com.au/removalists/melbourne">about $1,118.46</a>. The moving costs between states or cities will be more expensive if you move further away. You could choose to handle packing yourself and hire some help with a truck – a common option with businesses such as “<a href="https://www.gumtree.com.au/s-removals-storage/gold-coast/2+men+and+a+truck/k0c18643l3006035">Two Men and a Truck</a>”, which typically costs around $100 per hour. Be aware, though, that the hourly rate often starts from the moment the truck leaves the company’s warehouse until it returns. Alternatively, you can rent a van for a lower price, such as $87 for a 24-hour <a href="https://www.bunnings.com.au/for-hire-handivan-24hr-first-100kms-inc-_p5470402">Handivan rental at Bunnings</a>. Don’t forget the cost of moving boxes, too: Bunnings’ 52 litre <a href="https://www.bunnings.com.au/bunnings-52l-light-duty-moving-carton_p0517130?srsltid=AfmBOoqCYAWT0P5apPiJpoOLRAIpUCHNi63ztvIZrG5CxCoNOv45G0TV">moving cartons</a> cost $2.66 each. End-of-lease or <a href="https://firstcallhomeservices.com.au/service-menu/bond-exit-end-lease-cleaning/">bond cleaning</a> is another common expense. For a typical three-bedroom property, internal cleaning can range from $365 to $500. If you have pets, or kids who love drawing on the walls, your cleaning costs might be a bit higher. Now, let’s look at utility connection expenses that can catch people by surprise. Cancelling your internet service can be costly if you don’t meet the exit or cancellation policies. With <a href="https://www.telstra.com.au/internet/5g-home-internet">Telstra Home Internet</a>, for example, if you cancel within the first 24 months, you must return your modem within 21 days to avoid a $400 non-return fee. Most providers charge a cancellation fee or require final device repayments, typically ranging from $100 to $500, depending on the remaining contract period. As a renter, it might be wise to choose a no-lock-in contract plan to avoid these fees if you need flexibility. Electricity and gas connection and disconnection fees are usually minor but can add up, often costing about $40 to $60 for <a href="https://www.energyon.com.au/fees-and-charges/">connection and disconnection fees</a> for electricity alone. If your house uses gas for hot water or cooking, you may have to pay additional fees for setting up service. However, there are also non-financial costs, like the time spent searching for a new home, attending inspections, and putting in applications. Moving takes effort and energy for packing, transporting and unpacking. Some people feel emotionally attached to their current home, which can make leaving harder. Older renters <a href="https://www.sciencedirect.com/science/article/abs/pii/S1353829218311304">seem to draw strength</a> from their familiarity with, attachment to, and enjoyment of their place and community. This is something to be considered. Plus, moving can take <a href="https://www.nature.com/articles/s41537-023-00349-w">an emotional toll</a>. <h2>The benefits of not moving</h2> The clear benefit of staying is avoiding the hassle of relocating. Staying means saving on moving expenses and avoiding the time spent searching for a new place, packing and unpacking. This may also save some people from needing to take time off work. Changing and updating an address is also another tedious task that can be avoided by staying. Moving can hit the hip pocket with “after moving costs” that people may not initially consider. For instance, a new location might mean a longer commute. If each trip adds just 15 extra minutes, that could amount to an additional 11 hours per month over 22 workdays. For drivers, increased fuel and parking expenses might also come into play. Is the current or new location closer to a supermarket, hospital, and school? This proximity could be beneficial or detrimental, depending on the surrounding environment and available services. <h2>To move or not to move?</h2> One point to note is that overall, moving costs are likely to be similar between big cities and regional areas if you get moving supplies or rent a van from a large company such as Bunnings. In the end, moving costs will be around $2,000 based on the figures above, and it can be around $800 to $1,000 cheaper if you opt to rent a van instead of using a full-service moving company. Therefore, if the current rent is $600 per week and is about to increase by 10% to $660, the additional cost would be $3,120 per year. So is it cheaper to move or stay when your rent increases by 10%? The answer is moving may save about $1,000 to $2,000, but comes with the hassle and emotional toll of relocation. Staying will be more expensive, but with less hassle and emotional strain. The right choice depends on your situation.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/243155/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, Associate Professor of Marketing, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a> and <a href="https://theconversation.com/profiles/sara-quach-175976">Sara Quach</a>, Senior Lecturer in Marketing, <a href="https://theconversation.com/institutions/griffith-university-828">Griffith University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/to-move-or-not-to-move-is-it-cheaper-to-find-a-new-place-or-stay-when-your-rent-increases-by-10-243155">original article</a>. </div>

Money & Banking

Becoming a landlord while still renting? ‘Rentvesting’ promises a foot on the property ladder, but watch your step

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/james-graham-1264059">James Graham</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> As home ownership moves further out of reach for many Australians, “rentvesting” is being touted as a lifesaver. Rentvesting is the practice of renting one property to live in yourself, while simultaneously purchasing an investment property somewhere cheaper and leasing it out. Ideally, “rentvestors” get to enjoy the capital gains on an investment property while living where they actually want to live, allowing them to cash in and upsize to their dream home later. It might seem like a savvy way to game the property market. But what are the risks of such an investment strategy? And how might broad adoption of this behaviour affect housing affordability in Australia? <h2>A rising tide lifts all boats differently</h2> The aim of the rentvesting game is to buy cheap property now, ride the expected capital gains, and move into a more desirable home down the track. The hope is that by climbing the first rung of the property ladder early, the whole thing won’t be pulled up out of reach. The first problem with this strategy, however, is that capital gains on housing are not always and everywhere equal. Generally, the cheapest properties available to rentvestors will be houses in the regions or apartments in the city. But both regional housing and apartment properties <a href="https://www.abc.net.au/news/2024-02-20/house-apartment-price-gap-widens-record-high-property-market/103484076">tend to appreciate more slowly</a> than the inner-city houses rentvestors might hope to live in one day. They might get a foot on the property ladder, but the rungs themselves are slowly drifting apart. Would-be rentvestors should also be aware that investments by “out-of-town” buyers tend to generate <a href="https://academic.oup.com/rfs/article-abstract/29/2/486/1902789">much lower returns</a> – both capital gains and rental yields – than investments by locals. Out-of-towners don’t know the local market trends, don’t know which neighbourhoods to avoid, and aren’t able to monitor their investments as effectively from afar. Avoiding the regions by investing in city apartments presents its own difficulties. Large, unexpected maintenance bills and poor strata management are <a href="https://www.abc.net.au/news/2024-03-21/a-world-of-hidden-charges:-strata-company-insiders/103617944">common complaints</a>. <h2>Different costs lead to different returns</h2> Perhaps the potential rentvestor should invest in something more straightforward instead, like stocks. After all, the return on equities in Australia has <a href="https://academic.oup.com/qje/article/134/3/1225/5435538">outperformed housing</a> in recent decades. However, it is much easier to borrow to invest in property than it is to borrow to invest in the stock market. And leverage is the investor’s secret weapon. For example, if house prices were to appreciate at 10% per year, then using a mortgage and a A$100,000 deposit on a $1 million property would earn you a 100% return on equity before costs. But while both investors and homeowners would earn that same basic return, their costs could be very different. For starters, property investors face capital gains tax on the proceeds of property sales, <a href="https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/eligibility-for-main-residence-exemption">unlike those selling their primary residence</a>. Banks also typically charge <a href="https://www.rba.gov.au/chart-pack/interest-rates.html">higher interest rates</a> on mortgages to investors than to homeowners. At times, the Australian Prudential Regulation Authority has also imposed caps on bank lending against investment properties, making it more difficult to find mortgage financing in the first place. Highly leveraged properties require mortgage insurance, too. Investors may need to take out larger insurance policies against the properties themselves, reflecting the higher risks associated with investment properties. Then, you also have to throw in property management fees, council rates, strata management fees and regular and unexpected maintenance costs. <h2>Negative gearing offers little benefit</h2> What about negative gearing? Property investors that generate losses on their property can deduct these costs against the tax bill on their other income. But negative gearing disproportionately benefits high-income earners with large tax bills. The <a href="https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/personal-income-australia/latest-release">median Australian individual income</a> is around $55,00, which generates a tax bill of about $8,000 – not a lot from which investment property losses can be deducted. The bigger picture is that while negative gearing helps defray the regular costs of managing a property, it doesn’t do anything to change expected capital gains. At the end of the spreadsheet tally, an investment property could end up earning rentvestors significantly less than they could have gained by simply buying their first home. <h2>Effects on housing affordability</h2> Rentvesting is new enough that its prevalence and influence awaits formal academic study. But economists might speculate about its implications for the housing market more broadly. The simplest analysis suggests that a rentvestor occupies one rental property while supplying an additional rental property to the market. If, instead, they had bought a home, they would vacate a rental property while removing another property from the market. In this case, even rentvesting en masse would have zero net effect on the housing market. But a more nuanced perspective might consider where rentvestors are renting and where they are investing. Perhaps they are most likely to rent properties in the already-crowded inner city, but purchase investment properties in regional areas where other first home buyers would like to live. This would increase demand for rentals in the city and reduce the supply of owner-occupier properties in the regions, worsening the affordability of both. Of course, if these rentvestors all eventually move up the property ladder – selling in the region and purchasing in the city – this effect would be reversed. From that longer-term perspective, rentvestors would ultimately have little effect. <h2>We still need more houses</h2> Rentvesting is not a panacea for Australia’s housing market woes. Potential investors should weigh the benefits of property investment against its substantial costs and risks. Additionally, they need to carefully consider the obvious alternative: simply buying their first home up-front. We have good reason to be wary of yet another get-rich-quick scheme involving the housing market. But initial considerations suggest that for the market overall, rentvestor behaviour is no worse than someone simply buying their first home, which we would otherwise encourage. Rather than criticising those seeking a way though our housing market morass, we might instead redouble our efforts to increase the supply of housing.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/229116/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/james-graham-1264059">James Graham</a>, Lecturer in Economics, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/becoming-a-landlord-while-still-renting-rentvesting-promises-a-foot-on-the-property-ladder-but-watch-your-step-229116">original article</a>. </div>

Money & Banking

"You are the problem": Landlord slammed over rent increase just before Christmas

An Australian landlord has been slammed online for deciding to raise the rent on one of her struggling tenants before Christmas. The landlord from WA took to social media to try to defend her decision to slap her tenant, who is a single mother, with a $100 rental increase at the start of the festive season. The woman, who owns four rental properties, explained that the increase comes from the growing market value in the suburb the tenant lives. "I decided to increase the rent by $100 a week for my tenant, who is a single mum with two kids, on the basis a reasonable rental increase would have been an extra $140 a week," she began in the video shared to her X account. "I recognise that she probably couldn't afford that. So I came to the conclusion that $100 would be a very good deal considering the suburb and it would be one of the cheaper rentals on the market." The tenant said that she is unable to afford the steep increase, especially in the weeks before Christmas, and would have to decide between affording her rent and feeding her young children. "So now I'm in a position. Do I subsidise the tenant's rent and cop it out of my own pocket... or do I tell this tenant she can't afford this particular suburb and she should look for somewhere more reasonable," the landlord said. "It's a really tough decision and one that I am not taking on lightly and just further evidence that this housing crisis is really impacting people financially." In the end, she decided to increase the tenant's rent. "I increased the tenant's rent by $100 per week after I did further research. The rent is still $30-$40 per under market value. Now I'm learning you can't mix emotions with business," she said. The landlord has been rinsed online, with many people calling out her callous actions in the festive season, dubbing her as "greedy" and contributing to nation's housing problem. "Jesus, I cannot imagine increasing a rent by $100 a week- that would ruin anyone, let alone a single mum. What are you thinking of? Have some ethics," one person said. "You and the real estate industry are the problem! Hiking the rent based on your real estate greed. If you recognise the social issues why do you add to the problem?" another person added. A third person chimed, "Is this satire? Surely you aren't this much of an awful human being." "I fully understand it's your property - however to increase rent just before Christmas is a little heartless and $100 a week increase is tall during a cost of living crisis," a fourth person said. Others jumped to defend the landlord, claiming owning rental property is a business and not a charity. One person commented, "Take the emotion out of it! It's an investment property not a charity! As harsh as that sounds it's the cost of being successful. But, perhaps leave it until after Christmas though as a goodwill gesture." Image credits: X / Instagram

Money & Banking

Women forced to do shocking act for $100 rent reduction

Two women in Queensland have claimed that they were forced to use a makeshift "temporary shower" outdoors, while renovations are being carried out in the property's only bathroom. The pair, who were expecting a porta-loo style shower to use during the four-to-six weeks renovation, were horrified when they found out the makeshift shower was just a blue tarpaulin attached to the side of the house. Electrical cords and plumbing pipes can be spotted hanging down in front of the open cubicle, and has no curtain for privacy or a lock, raising questions for their privacy and safety. To make matters worse, the women revealed on Facebook that they initially tried negotiating for a rental discount of $200 per week during the renovations, but their landlord said "no way" offering only a $50 discount, "then $100 as final offer". Dr Chris Martin, Senior Research Fellow in the University of NSW's City Futures Research Centre, slammed the landlord for "a bunch of possible breaches". "There is a big question about whether the temporary arrangement meets the minimum standards that apply to rented premises in Queensland under the Residential Tenancies and Rooming Accommodation Act," he told Yahoo News. "Those minimum standards include that the bathroom and toilet facilities must provide privacy and that a premise must be weatherproof and structurally sound, and there's a standard about security," he added. He also claimed that "there's a bunch of possible breaches of the minimum standards of this temporary arrangement," as intruders could also potentially get in. The Senior Research Fellow also slammed the $100-a-week reduction in rent, calling it "grossly insufficient". "What a professional landlord who takes a bit of pride in themselves as a reputable housing provider would have done, is hire one of those portable bathrooms that come on a little trailer with a little heater and hook it up, and also do a rent reduction for the hassle of having to trot out to the trailer to shower," he said. "That would be the appropriate response." He encouraged the tenants to speak to Tenants Queensland or a local tenants advice service about what to do, adding that they could say that the current temporary arrangements could be deemed "unlivable or uninhabitable". "I suggest they should also be telling the landlord that this arrangement may place the landlord in a further breach of the agreement and for the liability for an even bigger rent reduction and the prospect of compensation if they don't do this better," Dr Martin told the publication. Images: Facebook

Money & Banking

The debate: Should kids over 18 pay rent if they’re still living at home?

Parents have shared their thoughts on letting their children live at home rent free, as the age old debate of paying board stirred up some strong opinions. A <a href="https://honey.nine.com.au/money/should-children-over-the-age-of-18-pay-board-if-they-still-live-at-home-reader-poll-exclusive/77876711-2950-4bf3-bb30-716442a6fd74" target="_blank" rel="noopener">nine.com.au</a> reader survey asked the question: Should children over the age of 18 pay board if they still live at home? The responses were many and varied, as a whopping 72 percent of respondents said grown up kids should be contributing financially to the household. One person commented, "If children have employment, it's important that they clearly understand that life is not free and they need to budget, show accountability and responsibility." Another wrote, "If the children over 18 are working, then yes, they should contribute or give money to the parents to bank for them." Others said children shouldn't be expected to pay board, and would rather their kids save money for bigger financial commitments. "My parents did not charge me board even though I was working because they did not need the money and told me to save for my first car, which I did," one person shared. Another wrote their parenting tactic, writing, "I let my children not pay board. So they could save for a deposit on a house. They did and they all (3) have a house." Despite many people sharing their strong opinions on the matter, most respondents said it was not a black and white question, as many households have individual circumstances that affect their decision. "Depends on if they are working or not and what income the parents have. My son is 22 but unemployed due to health problem, we just pool our unemployment payment so it differs for each family situation, not a YES or No answer," one reader wrote. Another said it depends on their employment and study status, writing, "Yes if they're working almost full time, not if they're studying and just working part time to cover living expenses." The poll comes as Aussies have struggled with a rise in basic living costs, with <a href="https://www.finder.com.au/australian-household-spending-statistics" target="_blank" rel="noopener">ABS</a> data showing that Australian households spent a total of $1.2 trillion on what was classed as general living costs in 2022. This sum is close to $100 billion more than in 2021. The average household spent $130,353 in 2022, which is the equivalent of $2507 per week. This is a 20.4 per cent jump on the previous year. Image credits: Getty Images

Money & Banking

Princess Diana's childhood home up for rent

The house Princess Diana spent her childhood and teenage years in is now available for the public to rent. Althorp House, located in West Northamptonshire in England, is owned by Diana's brother Earl Spencer, who has lived on the sprawling property as custodian of the estate since 1992. The expansive property has been listed for royal fans with deep pockets to rent on <a href="https://www.elysian-estates.co.uk/althorp/" target="_blank" rel="noopener">Elysian Estates</a>, an upmarket equivalent of Airbnb. Althorp House, which is a 90 minute drive out of London, was built in 1508 and has been in the Spencer family for 19 generations. Lady Diana lived in the 90-room stately home for most of her childhood and teenage years, before she married the then-Prince Charles in 1981. Not just one grand property, the estate covers 13,000 acres of countryside as it encompasses cottages, farms, woodlands and villages, which are open to visitors but only at certain times of the year. Now, the home is once again available to rent via Elysian Estates. "Althorp offers unparalleled levels of service, privacy and luxury to rival the finest properties anywhere in the world; yet retains the truly welcoming and homely feel that makes Althorp so special," the listing says. "Walk in the footsteps of kings and queens, feast or celebrate in spectacular surroundings, marvel at the sense of history and artwork, and slumber in pure luxury." In the main house, there are six state bedrooms to choose from offering "a level of opulence befitting royalty, with these very rooms playing as much a part of English history as any royal palace". Prices for the rental are not yet publicly available as an enquiry must be sent to reserve the opulent property. The listing stated that the stay includes "butler service, a team of private chefs and housekeeping, with a dedicated concierge service". Althorp is today most famous for being the final resting place of Princess Diana following her death in Paris. Image credits: Getty Images / Instagram

Real Estate

The rental housing crisis is hurting our most vulnerable and demands a range of solutions (but capping rents isn’t one of them)

<a href="https://theconversation.com/profiles/andrew-beer-111469">Andrew Beer</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> and <a href="https://theconversation.com/profiles/emma-baker-172081">Emma Baker</a>, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a> Roughly <a href="https://www.abs.gov.au/statistics/people/housing/housing-occupancy-and-costs/2019-20">one in three Australians</a> rent their homes. It’s Australia’s fastest-growing tenure, but renting is increasingly unaffordable. From 2020 to 2022, our <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4253168">research</a> found a large increase in the proportion of renters who said their housing was unaffordable. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=217&fit=crop&dpr=1 600w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=217&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=217&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=273&fit=crop&dpr=1 754w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=273&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=273&fit=crop&dpr=3 2262w" alt="horizontal bar chart showing changes in Australian renters' assessments of affordability form 2020 to 2022" /></a><figcaption>Change in Australian renters’ assessments of affordability from 2020 to 2022. Baker, Daniel, Beer, et al, forthcoming, The Australian Housing Conditions Dataset, doi:10.26193/SLCU9J, ADA Dataverse</figcaption></figure> Australians are concerned about the <a href="https://www.theguardian.com/australia-news/2023/jul/05/rents-rise-again-across-australia-with-sydney-seeing-fastest-rise-in-20-years">pace</a> of <a href="https://www.sbs.com.au/news/article/how-much-has-rent-increased-around-australia/8ljlnf0zm">rent rises</a>. Prime Minister Anthony Albanese <a href="https://www.pm.gov.au/media/national-cabinet-meeting">says</a> increasing housing supply and affordability is the “key priority” for tomorrow’s national cabinet meeting. The crisis has impacts well beyond affordability. The rental sector is where the worst housing accommodates the poorest Australians with the worst health. <h2>The unhealthy state of rental housing</h2> Forthcoming data from the <a href="https://dataverse.ada.edu.au/dataverse/ahcdi">Australian Housing Conditions Dataset</a> highlight some of these parallel challenges: <ul> <li> it’s often insecure – the average lease is less than 12 months, and less than a third of formal rental agreements extend beyond 12 months </li> <li> rental housing quality is often very poor – 45% of renters rate the condition of their dwelling as “average, poor, or very poor” </li> <li> poor housing conditions put the health of renters at risk – 43% report problems with damp or mould, and 35% have difficulty keeping their homes warm in winter or cool in summer </li> <li> compounding these health risks, people with poorer health are over-represented in the rental sector. Renters are almost twice as likely as mortgage holders to have poorer general health. </li> </ul> Measures that potentially restrict the supply of lower-cost rental housing – such as rent caps – will <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4253168">worsen these impacts</a>. More households will be left searching in a shrinking pool of affordable housing. <h2>It’s all about supply</h2> Fixing the rental crisis needs more than a single focus on private rental housing. The movement between households over time between renting and buying homes means the best solutions are those that boost the supply of affordable housing generally. No one policy can provide all the answers. Governments should be looking at multiple actions, including: <ul> <li> requiring local councils to adopt affordable housing strategies as well as mandating <a href="https://www.ahuri.edu.au/analysis/brief/understanding-inclusionary-zoning">inclusionary zoning</a>, which requires developments to include a proportion of affordable homes </li> <li> improving land supply through better forecasting at the national, state and local levels </li> <li> giving housing and planning ministers the power to deliver affordable housing targets by providing support for demonstration projects, subsidised land to social housing providers and access to surplus land </li> <li> boosting the recruitment and retention of skilled construction workers from both domestic and international sources. </li> </ul> <h2>The biggest landlord subsidy isn’t helping</h2> More than <a href="https://data.gov.au/data/dataset/taxation-statistics-2020-21/resource/ebbd32e3-4556-41e1-a8b9-33387457d518">1 million Australians</a> claim a net rent loss (negative gearing) each year. Even though negative gearing is focused on rental investment losses, it is not strictly a housing policy as it applies to many types of investment. The impact of negative gearing on the housing system is untargeted and largely uncontrolled. As a result, it’s driving outcomes that are sometimes at odds with the need to supply well-located affordable housing. The most impactful action the Australian government could take to deliver more affordable rental housing nationwide would involve refining negative-gearing arrangements to boost the supply of low-income rentals. These measures may involve <ul> <li>limiting negative gearing to dwellings less than ten years old</li> <li>introducing a low-income tax credit scheme similar to the one in the United States.</li> </ul> We can learn much from the US, where the Low-Income Housing Tax Credit (<a href="https://www.huduser.gov/portal/datasets/lihtc.html">LIHTC</a>) scheme subsidises the acquisition, construction and renovation of affordable rental housing for tenants on low to moderate incomes. Since the mid-1990s, the program has supported the construction or renovation of about 110,000 affordable rental units each year. That adds up to over <a href="https://www.taxpolicycenter.org/briefing-book/what-low-income-housing-tax-credit-and-how-does-it-work">2 million units</a> at an estimated annual cost of US$9billion (A$13.8billion). This scheme is much less expensive per unit of affordable housing delivered than Australia’s system of negative gearing. Closer to home, the previous National Rental Affordability Scheme showed the value of targeted financial incentives in encouraging affordable housing. This scheme, available to private and disproved investors, generated positive outcomes for tenants. The benefits included better health for low-income tenants who were able to moved into quality new housing. A <a href="https://cityfutures.ada.unsw.edu.au/documents/81/Next_moves_report.pdf">raft</a> of <a href="https://apo.org.au/node/260431">evaluations</a> have <a href="https://www.ahuri.edu.au/research/final-reports/267">demonstrated</a> the achievements of this scheme. <h2>Crisis calls for lasting solutions</h2> Short-term measures such as rent caps or eviction bans will not provide a solution in the near future or even the medium or long term. Instead, these are likely to worsen both the housing costs and health of low-income tenants. Reform focused on ongoing needs is called for. Solutions that can be implemented quickly include the tighter targeting of negative gearing and the introduction of a low-income housing tax credit. Talking about change, as the national cabinet is doing, will begin that process of transformation, but it must be backed up by a range of measures to boost the supply of affordable housing. This, in turn, will improve the housing market overall as affordable options become more widely available.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/211275/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/andrew-beer-111469">Andrew Beer</a>, Executive Dean, UniSA Business, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> and <a href="https://theconversation.com/profiles/emma-baker-172081">Emma Baker</a>, Professor of Housing Research, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-rental-housing-crisis-is-hurting-our-most-vulnerable-and-demands-a-range-of-solutions-but-capping-rents-isnt-one-of-them-211275">original article</a>.

Real Estate

Grandparents to the rescue in the face of soaring rents

As the cost of living in Australia continues to rise, taking rental and property prices up with it, younger generations are facing a whole new host of challenges when it comes to putting a roof over their heads. But for one woman from New South Wales’ Blue Mountains region, the answer lay closer than she ever could have anticipated. As 24-year-old Isis Pattison told ABC’s Hack, she had been looking for an affordable rental in her local area for months when she lost track of how many applications she’d submitted, and the entire ordeal had become “ridiculous” - until she’d taken her grandmother, Debbie, along with her. Debbie explained that her granddaughter had been looking at a yurt that “was round and connected by a little pathway. And they wanted $370 a week for it”, and that she had been shocked by the cost. Her solution? Offering Isis a place in her own home, so that she could “save that $370”. And Isis’ financial boost wasn’t the only benefit to come of the whole arrangement, with Debbie noting that she’d “been on my own now for nearly eight years. It’s been very lonely and expensive on my own.” She’d been hit hard by the cost of living crisis too, she revealed, admitting that she had been struggling to make ends meet between bills and essential home items, including everything from food to electricity and heating. At the worst of it all, the grandmother had even feared she may have to sell the home she’d been making for herself since 1981. But things had picked up for Debbie with the arrival of her new roommate, as while Isis wasn’t paying rent at her grandmother’s, she was helping out with the bills, paying half. “It's a big help,” Debbie said. “I'm grateful and happy that she's here. I think my standard of living is a little bit better. I've got the heating on now.” For Isis, who intended to return to university and undertake a nursing degree, her grandmother’s generosity meant more than just extra dollars in her savings account, too. “I think it really works for us as well, because we’ve always just had a good connection,” she shared. “We understand each other, which makes it a lot easier.” And they aren’t the only ones who’ve turned to multigenerational living to combat the crisis, with the University of New South Wales’ Edgar Liu revealing that “one in every five people” have returned home since the COVID pandemic swept the country. Unsurprisingly, the most common reasons behind the moves were the cost of living and related finance woes. As Liu explained, “that encompasses a whole range of things from sharing bills, or finding better value and sharing costs." Images: Getty

Real Estate

Room to Move: Desperate renters forced into backyard boxes

Victorian tenants have taken desperate measures in their hunt for a home in the midst of a housing crisis, turning to portable rooms set up in their parent’s driveways and backyards. The portables - described as ‘stand-alone separate rooms’ - have been seen across Facebook Marketplace for up to $180 per week, in a time when Melbourne’s median rent has reached $460 each week. The company behind the Room to Move initiative have advertised a 7.2sq m room for $150 per week, and for those seeking a little more wiggle room, a 10.1sq m room is available for $180. However, a minimum hire period of six months applies to both, as well as a bond of $500, and a one-month written notice to end the lease. And for anyone just outside of Melbourne who might be interested, the rooms can be delivered within a three-to-four hour drive from the city - for a fee of $250. The spaces don’t come with bathrooms, but do feature weatherproof electrical sockets that power two double power points, two internal downlights, and a reverse cycle air conditioner. “There’s plenty of demand for people looking for a short term solution for accommodation,” Room to Move co-founder Nick Nottle said of the decision to launch the spaces. “Typically people place [the rooms] in their backyard or on their driveway back off the street a bit.” He noted that the spaces attracted the most attention from renters who were moving back in with family in a bid to save enough for their own house deposit, and that he and business partner Mike Rose launched Room to Move when they noticed a gap in the market, and saw an opportunity for portables that weren’t an eyesore in a residential environment. “Neighbours don’t really complain because people like the look of it,” he said, “it doesn’t look like you’ve just dropped a big shipping container in your backyard.” Beyond desperate renters, however, Nick believes the ‘properties’ also appeal to parents who want something self-contained to get their teenagers out of their hair, as well as having somewhere to house visitors coming from a long way away. And last but not least, according to Nick, “the other group is people using them as an office to work from home, or for studio-type businesses like a lash salon, tattoo parlour or hairdresser - things you can do from home rather than renting a space elsewhere.” Images: Facebook, realestate.com.au

Real Estate

House with "free" rent listed with major catch

A dilapidated house has been leased for free, offering prospective tenants 12 months of free housing. However, the three bedroom house in south-west Sydney must undergo a full renovation before anyone can move in. Originally posted on Domain, the house has been deemed "currently uninhabitable", with the listing quickly going viral before being taken down. The listing read, “3 bedroom family home perfect for the growing family, nestled in a quiet yet convenient location being close to all the wonderful amenities such as transport, parks, schools, shops in need of a renovation.” Hidden deep within the listing was the information that the house is not currently fit for anyone to live in, with the tenants being expected to front the cost of the entire renovation. “Property is currently uninhabitable - work is required before moving in. The landlord does not have the funds to renovate the property,” the listing said. The listing agent described it as an opportunity for a “savvy minded person or persons with trade knowledge and experience”. The successful tenant will be required to pay for the “full renovation at their own expense”, and in return will receive a three-year lease at the property with the first year coming with no charge. However, they will then need to pay for the second and third years of their lease, with the rent "negotiable" at $650 a week. The listing quickly went viral, with commenters calling out the landlord's "audacity" to ask such a task of a renter that only receives one year of free housing for all their hard work. “Next they will tell you to build a house which you can then rent back,” one person said. “Wow. Just when you thought the audacity was at its most audacious,” another person commented. On Reddit, commentators also pointed out the new tenant would need to spend thousands on the renovation, making the one year of free rent basically worthless. "What a steal. Instead of paying $33,800 a year (the $650 they want after the first year) you get to spend 100-200k+," someone said. "If the landlord is tight on money and doesn't have the funds to renovate, they should just sell the place," another commented. Image credits: Domain

Real Estate

What made rents soar? It might have been COVID, and pairing off

So, you think you know why rents climbed. You probably think was skyrocketing interest rates and a tsunami of migration. It’s true that interest rates have jumped more over the past year than at any time on record, and it’s true that migration has roared back – in the six months to September 2022 (the latest month for which we’ve official figures) arrivals exceeded departures by <a href="https://www.abs.gov.au/statistics/people/population/national-state-and-territory-population/sep-2022">170,000</a>. But here’s the thing. Advertised rents began climbing sharply in <a href="https://www.realestate.com.au/insights/where-rents-prices-are-really-skyrocketing-in-some-cases-by-600-a-week-more/">late 2021</a> – six months before the Reserve Bank began pushing up interest rates, and at a time <a href="https://theconversation.com/top-economists-expect-rba-to-hold-rates-low-in-2022-as-real-wages-fall-175054">when it was forecast not to</a>. And “net migration” was <a href="https://www.abs.gov.au/statistics/people/population/national-state-and-territory-population/sep-2021">negative</a> back when rents were taking off – meaning the number of arrivals didn’t even match the number of departures. <h2>It’s supply and demand</h2> Something else made rents move. As it happens, there’s no particular reason to think interest rates would have quickly affected rents even if they had been climbing. If higher rates force some landlords to sell, and they sell to other landlords, the number of properties for rent won’t change. If those landlords sell to owner occupiers who would otherwise rent, they cut both the number of rental properties and the number of renters. What matters for rents, as for any price, is the demand for and the supply of the product being priced. More demand (more renters wanting properties) and the price climbs. More supply (more properties available for rent) and the price falls. On the face of it, neither demand nor supply was changing much during COVID as rents started climbing. Australia’s population was growing more slowly than at any time <a href="https://www.rba.gov.au/speeches/2023/sp-gov-2023-04-05.html">in modern history</a>. And, as best as we can tell, the number of properties available for rent was climbing, <a href="https://www.abs.gov.au/statistics/industry/building-and-construction/building-activity-australia/latest-release">albeit weakly</a>. What did change during COVID, according to the research department of the Reserve Bank, was the <a href="https://www.rba.gov.au/publications/bulletin/2023/mar/renters-rent-inflation-and-renter-stress.html">average number of people per household</a>. The change doesn’t sound big – the average fell from a bit above 2.6 residents per household to a bit below 2.55 – but applied to millions of households it meant about <a href="https://www.rba.gov.au/speeches/2022/sp-ag-2022-05-25.html">140,000</a> more houses and apartments were needed than would have been. <h2>Average household size (capital cities)</h2> The sudden change was awfully for hard for the building industry to respond to, especially when it was laid low by COVID. Why did we suddenly want to live with fewer people? The head of the Bank’s economic division, Luci Ellis, thinks it was COVID itself, and lockdowns. We suddenly became more precious about sharing space. <h2>‘Love the one you’re with’</h2> Ellis says proportion of Australians living in group houses declined and stayed low. Faced with the choice of living with a large number of housemates and just one other person, perhaps a romantic partner, a lot of renters left group houses and <a href="https://www.rba.gov.au/speeches/2022/sp-ag-2022-05-25.html">shacked up with each other</a>. As she put it last year, "On the question of who you would rather be locked down with, at least some Australians have voted with their removalists’ van, by moving out of their share house and in with their partner." There’s more to it of course, but where the supply and demand for anything are roughly in balance (rents had been increasing by <a href="https://theconversation.com/rent-crisis-average-rents-are-increasing-less-than-you-might-think-189154">less than 1% per year</a> in the four years before COVID, and fell in the first year of COVID) any sudden change in either supply or demand can move prices quickly. <h2>Advertised rents aren’t typical …</h2> Having said that, for most renters prices are still moving slowly. Advertised capital city rents are up <a href="https://www.realestate.com.au/insights/where-rents-prices-are-really-skyrocketing-in-some-cases-by-600-a-week-more/">13%</a> over the past year, and advertised regional rates up 9%. But average rents (the average of what all renters pay) are up only 4.8%. The rents charged to ongoing tenants climb <a href="https://theconversation.com/rent-crisis-average-rents-are-increasing-less-than-you-might-think-189154">much more slowly</a>than the rents charged to new tenants, in part because landlords often like their tenants, and in part because for the first year renters are usually on fixed contracts. But over time as renters move home, and landlords become less squeamish, more and more renters tend to pay the rents advertised. It makes the increase in advertised rents an unwelcome sign of what’s to come. <h2>… but they’re a sign of rents ahead</h2> And it might get worse. Reserve Bank Governor Philip Lowe says population growth is set to climb to <a href="https://www.rba.gov.au/speeches/2023/sp-gov-2023-04-05.html">2%</a> – near the peak reached during the resources boom. We won’t be able to build houses anything like that fast. Lowe says the last time Australia’s population surged it took about <a href="https://www.rba.gov.au/speeches/2023/sp-gov-2023-04-05.html">five years</a> for housing supply to fully respond to housing demand. We’ve ways of dealing with it of course. One is to re-embrace group homes, another is to delay moving out of our partents’ homes, or to move back in. But even if this does happen, Lowe says, with typical understatement, that rent inflation – ultra-low before COVID – is likely to stay “quite high” for some time. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/what-made-rents-soar-it-might-have-been-covid-and-pairing-off-203542" target="_blank" rel="noopener">The Conversation</a>.

Real Estate

Man lists patch of grass for $130 per week

A patch of grass is up for rent by a man accused of taking advantage of those suffering to find a home amid the housing crisis. The unimaginable living space in the man’s backyard in Eagle Valley, southwest Sydney has been advertised on Facebook Marketplace for $130 per week, with the successful applicant required to pay a $520 bond as well as two weeks of rent in advance. They would need to supply their own tent or “small shed”, the man wrote in the ad, adding it is only available for rent on a short-term basis. The man, in an attempt to entice renters, said the yard was in a “residential area, close to public transport and shops” and said he would be “open to discuss power, water, Wi-Fi, toilets and showers” for the right person. The ad has attracted a lot of criticism from Facebook users, even outside of the listing itself, with the man being dubbed “scummy”. “If you’re happy to loan your backyard to someone in that situation then you shouldn’t be charging a cent. If life has become that hard for someone they have to set up a tent in someone’s backyard then wouldn’t you think they are doing it hard enough?” wrote a person who shared the ad in a separate Facebook group. “$130 to pitch a tent in someone’s backyard and it doesn’t include access to facilities like a toilet. Exactly where are they expecting the tenants to urinate and defecate? Outside the tent like dogs?” one user wrote. “Unbelievable, way to take advantage of the housing crisis,” another responded. Several others questioned why a bond is required, especially such a costly one. The National Housing Finance and Investment Corporation’s latest State of the Nation’s Housing report for 2022-2023 found there were more than 330,000 households experiencing rental and financial hardship. In a report by Anglicare Australia’s Everybody’s Home campaign, findings saw <a href="https://www.oversixty.com.au/property/real-estate/those-copping-the-brunt-of-australia-s-rental-crisis" target="_blank" rel="noopener">some workers are paying more than 80% of their earnings on rent.</a> International students are also feeling the heat of the rental crisis, with one having to <a href="https://www.oversixty.com.au/property/real-estate/international-student-forced-to-live-in-tent" target="_blank" rel="noopener">sacrifice privacy to find affordable living</a>. Image credit: Facebook

Real Estate

"It’s just about their greed”: Pauline Hanson slams Pay The Rent initiative

Pauline Hanson has blasted a new proposal that would see Australian homeowners pay “rent” on the land they own to First Nations Australians, calling the idea “outrageous”. The initiative, called Pay The Rent, proposes a weekly payment from non-Indigenous homeowners to a “Sovereign Body of First Nations people” who will decide where the money is allocated without the input of the government. The body, which is driven by the motto “saying sorry isn’t enough”, aims to turn the scheme into an organisation that encourages all Australians to “honour the legacy of the Elders” by doing their part for the land through financial donations. “It is a somewhat more just way of living on this stolen land,” its website states. While there have been no official calls to make the scheme government policy, ex-Greens senator Lidia Thorpe and feminist author Clementine Ford have backed the initiative. Despite some support for the scheme, Pauline Hanson has been vocal in her disapproval, going as far as pushing others to sign a petition to “Stop the Rent Tax”. Her party has also released a statement branding the scheme as “deeply flawed and unjust” and a “distraction” from the real issues faced by the Indigenous community. Now, in her latest address to the senate, Hanson doubled down on her criticism of the plan, claiming it was “offensive” towards white Australians. <blockquote class="twitter-tweet"> The idea that non-indigenous Australians should pay rent to indigenous Australians is offensive and outrageous. Australia belongs to all Australians regardless of race. Let's reject this discrimination and focus on real problems affecting all Aussies! <a href="https://t.co/67oTXL5G8f">pic.twitter.com/67oTXL5G8f</a> — Pauline Hanson 🇦🇺 (@PaulineHansonOz) <a href="https://twitter.com/PaulineHansonOz/status/1638050131122733056?ref_src=twsrc%5Etfw">March 21, 2023</a></blockquote> “The idea Australians should pay rent for living in their own country is offensive, it’s based on the idea that only Aborigines (sic) own Australia. They don’t,” she said. “I was born here and no self-identifying Indigenous Australian including those with minute amounts of Indigenous heritage has more right or connection to this land than I do.” Senator Hanson continued by claiming all Australians had contributed to the nation’s achievements, failures and values, suggesting the scheme would be “discriminatory” towards the non-Indigenous community. “The only good thing about the race-based rent idea is that the activists who want it reveal their true motivation,” she said. “It’s not about justice or redress, it’s about money. Other people’s money. It’s just about their greed.” She continued her speech by slamming the Voice to Parliament, insisting it would be a gateway to giving the body a reason to introduce similar plans to the Pay The Rent initiative. “It’s only a matter of time before non-Aboriginal Australians are forced to pay yet more tax, a race-based rent tax,” she said. “As usual the Aboriginal industry will keep all the money and truly disadvantage Aborigines (sic) and remote communities will continue to suffer poverty, unemployment and crime.” While some agreed with Hanson’s opinions, those in favour of the initiative argued it was the least that could be done to support the Indigenous community. “It‘s their land – they never ceded ownership. After they suffered a century of genocide – rent is the least we should give them,” one comment read. Image credits: Getty Images

News

Artist puts the lid on rubbish rental prices

In the age of soaring interest rates and a global housing crisis, one young man in the United Kingdom had a wheelie good idea for getting a roof over his head. His solution? Skipping the queues, and moving into a bin. British artist and architect Harrison Marshall was down in the dumpsters when he decided to seize the opportunity, to both raise awareness about those being forced from their homes due to extortionate rent prices in London - and give himself somewhere to stay in the process - by converting an old skip into a tiny home. The Skip House boasts a whole range of features that one might not expect to find in a place so small - 25 square metres, in fact - with the likes of insulted timber framing, a barrel roof capable of fitting a bed, a kitchen hob - the whole set up including a sink, a stove, and a tiny fridge - as well as a wardrobe. And although it took a month since Marshall moved himself in, the skip was eventually connected to the grid, allowing him to warm his tiny property. The home doesn’t have its own flushing toilet or even a shower, but it doesn’t phase Marshall, who makes use of such amenities at work or at the gym. <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/reel/Co22dZwoxaQ/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/reel/Co22dZwoxaQ/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by SKIP House (@theskiphouse)</a> </div> </blockquote> “With the cost of living at an all time high, and no end in sight, this project is about living for less,” Marshall said of the project on the Skip House’s Instagram, “in one of the most expensive cities in the world, London. “People across the country are changing the way they live to compensate for the rising cost of basic necessities,” he continued. “Living in a skip isn’t the solution, but rather an exploration and a statement.” As Marshall, who now pays approximately $90 a week in rent, told Southwark News, “it seems crazy that people work in the city and can’t afford to live here. Or [that] people who have lived here their whole lives can’t afford to stay here, so they’re having to move out.” He explained that constructing the tiny home was “the only way” for him to continue to live there, and that he hoped to spark a conversation around housing, particularly when it came to unused urban wasteland spots, and how more creative solutions had to be out there. “It also gave quite a good juxtaposition between what you don’t typically think of as a house and almost the polar opposite of that, which is a bin or dumpster,” Marshall told Business Insider, “and how actually that could be turned into something which is relatively cosy and homely.” And as for what his neighbours think about his unusual housing venture, he told Southwark News that he had between 20 and 25 of them show up to his skip-warming, “they’re all super supportive. “People have even seen me doing stuff in the garden and gone to get their tools and come to help out and people around have filled up my hot water bottle.” Images: Instagram

Real Estate

Landlord rents out balcony for $300 a week

As the housing crisis in Australia continues, one landlord has decided to capitalise on the desperation of renters by leasing a balcony for $300 a week in a bizarre listing. The landlord shared the “room” on Facebook, sharing photos of the enclosed balcony with city views, obscured by tarps and heavy curtains, along with a peculiar list of questions for prospective tenants. “Man Private Room Sydney Cbd. 1 boy only. $300/week,” the ad read. “Quick response 04******** Please kindly send me your information.” The ad then prompts tenants to list what items they will be bringing into the apartment, before the landlord asks applicants to provide their nationality. The balcony room is in Haymarket’s Miramar building in the Sydney CBD, although any views of the city skyline have been obstructed with silver tarpaulin, while the glass sliding doors leading to the actual apartment were concealed by blue curtains. A blue single mattress has been squeezed into one corner of the balcony room, opposite a small desk and TV, with both walls adorned with tropical-themed art. When the landlord was contacted on the phone by news.com.au, they answered several questions before refusing to speak further with a female journalist. He said he had received “a lot of interest” and several calls about the property, though wouldn’t specify how many people had been in touch. A three-bed, two-bath unit in the building sold for $1.15 million in September last year, while the estimated rental income for a two-bed, one-bath unit is $810 per week. Even a parking space in the Miramar can be rented out for $650 a month. The listing comes amid unprecedented pressure on the Sydney rental market, with record-low vacancy rates pushing prices sky-high. The median rent for a house in Sydney reached a record high of $650 per week at the start of the year, while the median rent for a unit was also at a high of $550. Tenants have little choice but to pay up, with the national vacancy rate at just 0.9 per cent. Image credits: Facebook

Real Estate

How much it costs to rent Hugh Jackman’s bucket list home

After building and developing this stunning, minimalist East Hamptons estate over a period of six years, Wolverine star Hugh Jackman and his wife Deborra-lee Furness have decided to put it to better use by popping it onto the rental market – and it will only set you back around half-a-million dollars per month, according to <a href="https://www.corcoran.com/listing/for-rent/20-hedges-banks-drive-east-hampton-ny-11937/6517169/regionId/3" target="_blank" rel="noopener">Corcoran.com</a>. “Stunning Modern Waterfront Compound!” screams the listing. “Beautifully done, highest end construction, with every amenity, including gym, theater, flush edge pool, jacuzzi, and two single and separate homes, set high on the bluff overlooking the open bay with the most spectacular views!” After Hugh bought the property for $3.5m in 2015, he and Deborra-lee spent six long years renovating it, and turning it into what Furness described as her “lifelong dream”. Architect Stelle Lomont Rouhani collaborated with Jackman and Furness to create “the utmost Zen tranquillity overlooking the Gardiner's Bay in East Hampton”. The minimalist main house with a gourmet kitchen, Gaggenau appliances and an informal dining room features a hand-carved solid bleached walnut dining table, custom crafted by Field & Co., 3 en suite bedrooms, floor-to-ceiling glass doors, and a guest house, meticulously renovated and features open living space complete with a top-of-the-line kitchen with bar area, a step-down open living room with lounge-style seating, along with a loft bed and lounge areas and a primary suite overlooking the oversized pool and spa sitting above the bay with a spectacular 180-degree vista of the water. Set on a sprawling 2.5-acre plot, the 5-bedroom, 5 1/2 bath compound is the ultimate retreat with all the amenities of a 5-star resort. Images: Corcoran.com

Real Estate

Calls to protect rights of tenants with animals

Amid the current cost-of-living crisis and housing crisis, renters across Australia and New Zealand are finding it harder to secure homes to rent - but it’s even harder for renters with pets. In parts of Australia, landlords are legally protected if they refuse applications from tenants with companion animals, while New Zealand rentals can still refuse to have pets as well. Dr Zoei Sutton, an academic at Flinders University in South Australia, conducted a study involving in-depth interviews with tenants and stakeholders, including landlords, and found that many were struggling to obtain a rental when they had pets. “My study shows Australian landlords and property managers are particularly reluctant to house cats, as they’re seen as leaving allergy hazards or the need for deep cleaning of carpets. Owners of bigger dogs and certain breeds can also have a harder time finding housing,” she said. “And while we’re starting to see legislative shifts in Victoria and NSW, legislation to protect pet owners has been defeated in South Australia.” During the interviews, Dr Sutton also uncovered several strategies renters could use to improve their chances of success, including preparing pet ‘resumes’ for agents and landlords. “Both tenants and stakeholders agreed that there needs to be an understanding that rental houses are homes. This means working with both landlords and tenants to make sure everyone has a clear understanding of what fair ‘wear and tear’ is,” she added. While interviewing tenants, landlords, real estate agents, and emergency housing organisations in SA, she heard multiple stories of renters experiencing a “constant source of worry” while renting. “One tenant reported finding just ten potential properties listed as pet friendly while another family found only two within their price range. Some tenants are being asked to pay higher rent to secure a house,” Dr Sutton said. “Multiple participants reported that there was a bidding war for houses with some tenants offering 3 or 6 months rent in advance, just to secure a house. “One family had fallen through the damaged floor of their house multiple times but were reluctant to report the landlord’s failure to maintain the home because this might result in a bad reference when they next had to move.” “It’s a constant source of worry, knowing that your lease might not be renewed or your house might be sold and you’ll have to try to find something again.” Meanwhile, New Zealand journalist Charlotte Muru-Lanning <a href="https://thespinoff.co.nz/society/28-09-2022/the-absence-of-rights-for-renters-with-pets-is-just-cruel" target="_blank" rel="noopener">reported</a> in September that 14 percent of rentals available across the country were listed as “pets OK”, despite nearly half of New Zealand households. “We need more protections for tenants so they can report unfair housing conditions without jeopardising future housing,” Sutton said. “Animals need to be able to use the home too, and there are small things you can do to minimise any potential damage. “Property managers have a key role in educating landlords and tenants to ensure everyone is happy and has reasonable expectations.” Image: Getty Images

Real Estate

Illegal renting practice to be hauled over the coals

Both Labor and Liberal politicians have backed calls to reform the NSW rental market and rental practices. As the property crisis deepens amid rising rents and dwindling stock, rental bidding in particular has been highlighted as a major issue although the practice is banned in Victoria, Tasmania and Queensland. However, in NSW, agents and landlords can advertise properties without a fixed rate, or just list a range. The practice creates a situation where applicants can opt to pay high rent, outbidding those who can’t afford to. This comes as vacancy rates have dipped to levels not seen since 2003, while prices have increased by 3.2%, recent data has revealed. Speaking with The Daily Telegraph, Fair Trading Minister Victor Dominello said the Department of Fair Trading are currently preparing for a complete overhaul. “This is obviously an area where vulnerable people are exposed and needs reform,” he said. “I have asked my agency to investigate and come back with recommendations.” Speaking to Mr Dominello on Monday morning, <a href="https://www.2gb.com/fair-trading-minister-condemns-dodgy-real-estate-agents/" target="_blank" rel="noopener">2GB’s Chris Smith</a> claimed “dodgy real estate agents” were part of the reason NSW residents are pressured to spend so much to secure a rental property. Mr Dominello said that while some landlords have been forced to increase rents due to rising interest rates, the underlying issue comes down to a lack of rental properties being offered. “That’s the heart of it. It’s supply and demand,” he told Smith. Shadow Minister for Water, Housing and Homelessness Rose Jackson also condemned the trend and welcomed a review into the practice. Image: Shutterstock

Real Estate

Aussie man faces sky-high rent for “rotten” home

As the cost-of-living and housing crisis collide, it has left many Aussie renters living in poor conditions while paying an increasing amount to do so. For Jarod, who wished for his surname not to be used, this has meant experiencing multiple rental increases over the past couple of years, all while living in a home without heating or cooling that is “falling down”. The 51-year-old lives in Hobart, one of the country’s least affordable cities, and has gone from paying $450 a week back in 2020 to a hefty $540 now, with another jump expected to hit in the coming months that he is estimating will be upwards of $600. As a result of the skyrocketing rent, he has been forced to share the rental with a friend since it is “impossible” for him to live alone. “It’s set a precedent for greedy landlords and you think you are paying a lot of rent so you would get good services but this house is rotten and it’s falling down,” he told <a href="https://www.news.com.au/finance/real-estate/renting/impossible-rental-crisis-reveals-unaffordable-homes-across-australia/news-story/9037cc4ad2bd91b8c34cd03f176f032a" target="_blank" rel="noopener">news.com.au</a>. “The bathroom is falling into the floor, there is no heating and no cooling and this is a 200-year-old house that is basically in original condition. “But that’s not uncommon. I have looked at a lot of viewings and you see a really bad kitchen with no working oven and no heating and they still want top dollar and are not willing to budge to do any renovations.” The semi-retired antique dealer is also taking part in a project with Everyday’s Home, an affordability campaign group, by measuring the temperatures in his home. He told the outlet that one of his rooms measured at 41C recently despite the peak of summer still to come. Having moved to Tasmania in 2008, Jarod said he was easily able to find affordable rentals until 2016, with the recent exodus of people from Sydney and Brisbane making things even worse. “It’s causing strain on relationships with other people, like the other person I live with and my family and I’ve had to ask my family for money over the recent period as I’m struggling financially,” he said. “I have started to look but I don’t drive so I have had to look out in the remote areas and they are just really difficult with transport and getting around and getting to basic stuff like the shops. “Then you’re sacrificing your lifestyle and things like the shops and day-to-day activities that you would normally do. It’s just a really anxiety-ridden process. “I have been trying to find somewhere else but it’s really difficult as there is no stock available for the people looking as well, so you go to somewhere for example and there will be hundred people there.” Jarod’s story comes as a new rental affordability report from SGS Economics and National Shelter found that 40 percent of low-income households are experiencing rental stress, as well as struggling to pay for food, heating, and healthcare. In comparison, only 35 percent of low-income households were experiencing rental stress in 2008. The housing crisis has affected renters across the country, with historic lows in affordability being recorded in Brisbane, Perth and Sydney. Ellen White, the lead author of the report, said the rental crisis had spread to regional areas following the pandemic, with the recent floods also having an impact. National Shelter CEO Emma Greenhalgh has called for rental reform to help curb the rental crisis and stop the rise in homelessness and housing stress. “We need rental reform that includes limiting rent increases and adjustments to income support including Commonwealth Rent Assistance,” she said. “We also need greater investment in social and affordable housing to reverse a decade-long decline.” Images: news.com.au

Real Estate

Karl Stefanovic scores huge real estate win

Karl Stefanovic and his wife Jasmine have earned themselves a tidy profit in record time after their home on Sydney’s north shore was leased just five days after going up for rent. Their home in Castlecrag was snapped up at a hefty $1850 a week, nearly a third more than the median rent of $1400 for the area. The rental price isn’t the only above-average feat the home has achieved, having been leased five days after listing, with Castlecrag properties sitting on the market for an average of 32 days, per <a href="https://www.realestate.com.au/news/boofhead-karl-stefanovics-big-real-estate-win/" target="_blank" rel="noopener">realestate.com.au</a>. After <a href="https://www.oversixty.com.au/property/real-estate/sneak-peek-inside-karl-stefanovic-s-new-suburban-oasis">purchasing the three-bedroom home</a> in March last year, the Stefanovics were quick to put it on the rental market <a href="https://www.oversixty.com.au/property/real-estate/how-you-can-rent-karl-stefanovic-s-glam-sydney-home">in September</a> for a similar price of $1800 a week. It comes as the Today show presenter has been in the spotlight recently, with the news his co-host Ally Langdon would be moving on <a href="https://www.oversixty.com.au/news/news/it-s-daunting-a-current-affair-and-today-show-hosts-finally-confirmed">to host A Current Affair</a> and former ACA host Tracey Grimshaw describing him as having a “big boofhead”. Following rumours that <a href="https://www.oversixty.com.au/entertainment/tv/i-just-got-brushed-ally-langdon-responds-to-greatest-snub-in-australian-television">Grimshaw brushed off Langdon</a> during a farewell on her final ACA episode, the 62-year-old sent a hilarious text to her replacement the following day to address the rumours - and take a jab at Stefanovic. "I'm sorry I missed you," Tracy texted, per <a href="https://9now.nine.com.au/today/tracy-grimshaw-ally-langdon-a-current-affair-farewell/e0074648-5b75-4533-a398-afe4463f1610" target="_blank" rel="noopener">Today</a>. "I was so overwhelmed and obviously didn't see your petite head once Karl's big boofhead loomed into vision. Argh, big sorry." With Langdon departing Today at the end of this year, Stefanovic will continue to host the breakfast show next year with 60 Minutes reporter Sarah Abo. Images: realestate.com.au

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To move or not to move: is it cheaper to find a new place or stay when your rent increases by 10%?

Becoming a landlord while still renting? ‘Rentvesting’ promises a foot on the property ladder, but watch your step

"You are the problem": Landlord slammed over rent increase just before Christmas

Women forced to do shocking act for $100 rent reduction

The debate: Should kids over 18 pay rent if they’re still living at home?

Princess Diana's childhood home up for rent

The rental housing crisis is hurting our most vulnerable and demands a range of solutions (but capping rents isn’t one of them)

Grandparents to the rescue in the face of soaring rents

Room to Move: Desperate renters forced into backyard boxes

House with "free" rent listed with major catch

What made rents soar? It might have been COVID, and pairing off

Man lists patch of grass for $130 per week

"It’s just about their greed”: Pauline Hanson slams Pay The Rent initiative

Artist puts the lid on rubbish rental prices

Landlord rents out balcony for $300 a week

How much it costs to rent Hugh Jackman’s bucket list home

Calls to protect rights of tenants with animals

Illegal renting practice to be hauled over the coals

Aussie man faces sky-high rent for “rotten” home

Karl Stefanovic scores huge real estate win

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