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More renters stressed than homeowners
Topic Started: 15 Feb 2012, 06:57 AM (3,164 Views)
Rastus2
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Trojan
15 Feb 2012, 08:56 PM
This is the one of the main incentives to get a reverse mortgage if you ask me.
If you owned your house outright when you retired and you needed more money to live off than the pension, selling your house would mean you no longer qualify for the pension (asset test) whilst having to pay rent.
But by keeping your house and getting a reverse mortgage, the home will be exempt from the asset test and you still will be eligible for the pension whilst freeing up extra money to spend - and no rent to pay.
interesting spin on reverse mortgage Trojan.

I had never considered this aspect to what I considered a very bad mortgage... this would indeed make it tempting.
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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Canberra among nation's worst for rent stress

Stephanie Anderson
April 17, 2012

Canberra renters receiving government assistance are among the worst off in the country as new figures show that the ACT has the highest percentage of housing stress among recipients of Commonwealth Rent Assistance.

Fifty-four per cent of Canberrans receiving some form of federal rent assistance are suffering housing stress, meaning they spend more than 30 per cent of their income on housing costs.

The capital's percentages are higher than any other state or territory and are above the national rate of 41 per cent, according to statistics sourced from Senate Community Affairs Committee and issued by Australians for Affordable Housing today.

ACT Shelter executive officer Leigh Watson said it was obvious that Commonwealth Rent Assistance wasn't keeping people out of housing poverty in the capital.

She said Canberra needed a systematic reform of its private rental market, as well as interim measures such as its own rent assistance scheme.

A total of 9223 Canberrans receive some form of Commonwealth Rent Assistance, which Australians for Affordable Housing sorted in 11 categories, such as Newstart, Aged Pension and Austudy.

The ACT recorded housing stress levels above the national rate in 10 of the 11 categories.

Read more: http://canberratimes.domain.com.au/real-estate-news/canberra-among-nations-worst-for-rent-stress-20120416-1x42i.html
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Brisbane renters fall through the loop due to lack of guidelines, basic living standards needed

by: Sherine Conyers
From: Quest Newspapers
May 23, 2012 12:00AM

THE rental situation has become so dire people are renting chicken pens and garages just to maintain shelter according to accommodation support groups.

Rose Brown from the Tenants Union said more must be done to get compliance standards in place to protect tenants.

She said overcrowding, mould issues and getting repairs to property were just some of the challenges for tenants too scared to `rock the boat' for fear of retribution from landlords.

"Market forces don't offer any protection,'' she said.

"There really is a place for more affordable housing and some kind of regulation around standards.''

Queensland Shelter executive officer Adrian Pisarski said he'd seen one couple rent out a chook pen in desperation.

Read more: http://www.couriermail.com.au/questnews/brisbane-qld-queensland-renters-fall-through-the-loop-due-to-lack-of-guidelines-living-standards-rental-properties-market/story-fn8ygho7-1226363540293
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miw
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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.

The problem I have with housing stress as an indicator is that it is too complex.

No matter what income you have and almost no matter where you live, you can still be stressed - all you have to do is live in a place you cannot afford. This can be through poor choices, but it can also be through recent movements. For example, in Brisbane rents have been on the rise at the same time as interest rates have been falling. This would suggest that some people will be getting in trouble on rents, whereas things are getting easier for people with mortgages.

Also, Brisbane's really crappy public transport system and rising traffic congestion may be prompting people to live closer to work than they can really afford.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
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Thatguy
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Frank Castle
15 Feb 2012, 09:56 AM
28% of households and 30% of persons income

Shouldn't they be comparing the households income, not the individual?
Yes, they should.
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Thatguy
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Frank Castle
15 Feb 2012, 06:29 PM
At what level was this worked out on ?

Home owners may have been at 80% confident levels and now are down to 75%
while renters may have been at 30% confidence levels and are now at 35%

While renters may be more confident than they were in Feb, home owners confidence levels are clearly in front.
Yes. But it seems you are inferring that both parties have equal chance to be home owners. I highly doubt this is the case.

If both parties do not have equal chance to be home owners (income, employment, expenses, dependants) then you can't really compare them, can you.

It's like saying that Porsche owners stress levels have dropped compared to Hyundai owners. Buying a Porsche isn't going to solve the Hyundai owners problems.
Edited by Thatguy, 23 May 2012, 03:16 PM.
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stinkbug
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Thatguy
23 May 2012, 03:16 PM
It's like saying that Porsche owners stress levels have dropped compared to Hyundai owners. Buying a Porsche isn't going to solve the Hyundai owners problems.
The Hyundai drivers should do what the bears advocate: buy a Hyundai rather than a Porsche and invest the difference.

The only problem is that Hyundai only lasts a week and you have to buy a new one. Once you've finished paying for the Porsche it's yours forever.
Edited by stinkbug, 23 May 2012, 08:51 PM.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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Trojan
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miw
23 May 2012, 02:23 PM
The problem I have with housing stress as an indicator is that it is too complex.

No matter what income you have and almost no matter where you live, you can still be stressed - all you have to do is live in a place you cannot afford. This can be through poor choices, but it can also be through recent movements. For example, in Brisbane rents have been on the rise at the same time as interest rates have been falling. This would suggest that some people will be getting in trouble on rents, whereas things are getting easier for people with mortgages.

Also, Brisbane's really crappy public transport system and rising traffic congestion may be prompting people to live closer to work than they can really afford.
+1

Even if house prices fell by 50% overnight, people will just buy houses that were previously out of their price range and get back into "mortgage stress" pretty quickly.
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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