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More renters stressed than homeowners
Topic Started: 15 Feb 2012, 06:57 AM (3,163 Views)
zaph
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Quote:
 
More renters stressed than homeowners

More than double the amount of people in Brisbane are suffering from rent stress rather than the more publicised mortgage stress, new figures by Australians for Affordable Housing show.
The figures show 14,318 people were suffering mortgage stress while 34,818 people – 28 per cent of households – were under rent stress in Brisbane.
Mortgage or rent stress is defined as when the payments are more than 30 per cent of a person's income.

Queensland Shelter executive officer Adrian Pisarski said the much higher rate of rent stress than mortgage stress was not a surprise.
“People are obsessed with the housing stress on home owners, but these figures show that housing stress is most severe for renters," he said.
"We seriously need to think about rental stress in solutions to affordable housing."


Read more: http://www.brisbanetimes.com.au/business/property/more-renters-stressed-than-homeowners-report-20120214-1t3ps.html#ixzz1mO7VOHqv
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peter fraser
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thanks zaph - actually I would have thought that rental costs in brisbane would be less than most of the other mainland capital cities - certainly less than Sydney, Melbourne, and Perth.

Any expressed market opinion is my own and is not to be taken as financial advice
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hoofarted
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So if the proportion of owners outright, owners with mortgages and renters is roughly 33% each, does the statement "28 per cent of households" mean that only 5% of renters are not stressed?

This is a bullshit statistic concocted for their own gains.
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OhMy
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peter fraser
15 Feb 2012, 07:24 AM
thanks zaph - actually I would have thought that rental costs in brisbane would be less than most of the other mainland capital cities - certainly less than Sydney, Melbourne, and Perth.
Rent/mortgage stress is calculated as a percentage of income. So either rents are too high or incomes are too low. I think housing stress in Brisbane is caused by the fact that wages have not grown at the same rate as rents.

For years people in Sydney have earned more, doing the same jobs - even within the same company. It was always explained as 'higher living costs'. It was always a joke at work when the Sydney staff would want to transfer when they saw the price of housing up here. Only to realize that they were going to have to take a pay cut.

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OhMy
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hoofarted
15 Feb 2012, 07:32 AM
So if the proportion of owners outright, owners with mortgages and renters is roughly 33% each, does the statement "28 per cent of households" mean that only 5% of renters are not stressed?

This is a bullshit statistic concocted for their own gains.
I don't understand where you came to this conclusion. Are they not referring to statistics from their own study rather than from the abs stats for example?

If 28% of people are in rent stress doesn't that mean that 72% are not (minus he proportion in mortgage stress)

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Trojan
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hoofarted
15 Feb 2012, 07:32 AM
So if the proportion of owners outright, owners with mortgages and renters is roughly 33% each, does the statement "28 per cent of households" mean that only 5% of renters are not stressed?

This is a bullshit statistic concocted for their own gains.
Pretty sure that interpretation is incorrect.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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Frank Castle
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Business As Usual

zaph
15 Feb 2012, 06:57 AM
28 per cent of households – were under rent stress in Brisbane.
Mortgage or rent stress is defined as when the payments are more than 30 per cent of a person's income.
28% of households and 30% of persons income

Shouldn't they be comparing the households income, not the individual?
Edited by Frank Castle, 15 Feb 2012, 09:57 AM.
Ignore posts by The Whole Truth · View Post · End Ignoring
The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
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raveswei
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We know that there is much higher percentage of low income renters than low income mortgage holders. So, we can clearly say that although mortgage holders earn much more they struggle almost as poor renters.

To put this in numbers:

According to ABS* gross median mortgage holder household income is $1934, while renter household income is $1080. Although mortgage holders earn almost twice as much they suffer just marginally (2%) less.

So the real question for mortgage holders is why they do not live better than poor renters when they already earn twice as much?


* http://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/0/DBE855896D8CA36DCA2578FB0018533C/$File/65230_2009-10.pdf
http://popping-bubble.blogspot.com/

Thinking of an Australian property speculator (PI):
Inaction = missing opportunities.
Missing opportunities = losing.
Too much thinking = inaction.
Thinking = missing opportunities.
Therefore thinking = losing.

disgraceful little man Frank Castle owes a house to Salvation Army

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raveswei
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raveswei
15 Feb 2012, 10:19 AM
We know that there is much higher percentage of low income renters than low income mortgage holders. So, we can clearly say that although mortgage holders earn much more they struggle almost as poor renters.

To put this in numbers:

According to ABS* gross median mortgage holder household income is $1934, while renter household income is $1080. Although mortgage holders earn almost twice as much they suffer just marginally (2%) less.

So the real question for mortgage holders is why they do not live better than poor renters when they already earn twice as much?


* http://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/0/DBE855896D8CA36DCA2578FB0018533C/$File/65230_2009-10.pdf
Even though renters are officially struggling more they are more confident than "homeowners" with mortgages

Quote:
 
Consumer confidence jumps in Feb

CONSUMER confidence jumped in February, giving retailers hope that lacklustre retail sales might be set to improve.
But mortgagees and people on low incomes were pessimistic in their outlook, according to a monthly survey conducted by Westpac and the Melbourne Institute.

...

While renters were more confident in February, home owners with mortgages were less confident than the previous month. People in sales and clerical jobs and those on low incomes were the most pessimistic group surveyed in February.



http://www.theaustralian.com.au/business/economics/consumer-confidence-jumps-in-feb/story-e6frg926-1226271765169
http://popping-bubble.blogspot.com/

Thinking of an Australian property speculator (PI):
Inaction = missing opportunities.
Missing opportunities = losing.
Too much thinking = inaction.
Thinking = missing opportunities.
Therefore thinking = losing.

disgraceful little man Frank Castle owes a house to Salvation Army

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tech_support
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I cannot speak 4 all but I find rent much less stressful than a mortgage, when I sold up in tassie and moved to Adelaide I was very relived even though the mortgage was only $125k... I felt like a burden was lifted.
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