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The renting trap snaring retirees – and how to avoid it

<p><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">It has long been known that renting in retirement is associated with a lower quality of life. Understanding the causal factors can help you avoid a similar fate. There are many reasons why renting in retirement can be problematic. For a start, figures on how much income we need to retire comfortably usually assumes that you own your home – the cost of rent isn’t included. So, anyone using this as a guide falls well short, potentially by 20-40 per cent.</span></p> <p><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Additionally:</span></p> <ul> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Rent usually eats up a larger portion of retirement income than home ownership.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Over time, rents typically keep rising while mortgage debts reduce.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Home ownership provides equity to use for other investments, further boosting retirement income.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Downsizing homeowners can make an additional superannuation contribution from the sale proceeds, which renters cannot.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Homeowners can make accessibility modifications to meet their needs as they age, like installing ramps or rails.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Homeowners have greater stability and aren’t subject to eviction (and moving costs) at short notice.</span></li> </ul> <p><span style="border: 1pt none windowtext; padding: 0cm;"><strong>How big a problem is it?</strong></span></p> <p><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Numerous studies have highlighted the growing scale of the problem faced by renting retirees. </span><a style="color: #467886;" href="https://grattan.edu.au/report/renting-in-retirement-why-rent-assistance-needs-to-rise/" target="_blank" rel="noopener"><span style="font-family: Aptos, sans-serif; border: 1pt none windowtext; padding: 0cm;">The Grattan Institute</span></a><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;"> recently found that “two in three retirees who rent in the private market live in poverty,” and that “most older working Australians who rent do not have sufficient savings to keep paying rent in retirement.”</span></p> <p><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">The rental trap is also not exclusive to low-income earners. </span><a style="color: #467886;" href="https://everybodyshome.com.au/resources/priced-out-priced-out-an-index-of-affordable-rentals-for-australian-voters/" target="_blank" rel="noopener"><span style="font-family: Aptos, sans-serif; border: 1pt none windowtext; padding: 0cm;">Everybody’s Home</span></a><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;"> recently found Australians earning $100,000 per year – above the </span><a style="color: #467886;" href="https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/employee-earnings/latest-release" target="_blank" rel="noopener"><span style="font-family: Aptos, sans-serif; border: 1pt none windowtext; padding: 0cm;">national median of $1,396 per week</span></a><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;"> ($72,592 per year) – are struggling to pay their rent.</span></p> <p><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">The end result is that homelessness is a growing problem for over 55s – particularly women. </span><a style="color: #467886;" href="https://www.mercyfoundation.com.au/our-focus/ending-homelessness/older-women-and-homelessness/" target="_blank" rel="noopener"><span style="font-family: Aptos, sans-serif; border: 1pt none windowtext; padding: 0cm;">The Mercy Foundation</span></a><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;"> notes that homelessness among these women grew 6.6 per cent in the 2021 Census, following a huge 31 per cent increase in the 2016 Census.</span></p> <p><span style="border: 1pt none windowtext; padding: 0cm;"><strong>What is causing it?</strong></span></p> <p><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Not owning your own home in retirement is obvious answer here. But there are various contributing factors that see people forced to rent later in life, including losing their home and being financially unable to replace it.</span></p> <p><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">These include:</span></p> <ul> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Divorce/separation – court and legal fees, counselling costs, division of assets (including the family home).</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Pre-retirement chronic illness – time out of the workforce for both the patient and their partner to care for them, loss of income, less going into super, and higher healthcare costs.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Death of a partner – up-front bills like funeral expenses, surviving partner suddenly on a single income.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Elder abuse – an estimated </span><a style="color: #467886;" href="https://www.aihw.gov.au/family-domestic-and-sexual-violence/population-groups/older-people#abuse" target="_blank" rel="noopener"><span style="font-family: Aptos, sans-serif; border: 1pt none windowtext; padding: 0cm;">one in six older Australians experience elder abuse</span></a><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">, including 2.1 per cent facing financial abuse.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Domestic violence – fleeing abusive relationships with little or no money and assets.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Climate change – loss of uninsured home/other assets as storms, floods, cyclones, and fires increase in frequency and severity.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Scams – </span><a style="color: #467886;" href="https://www.nasc.gov.au/news/australians-better-protected-as-reported-scam-losses-fell-by-almost-26-per-cent" target="_blank" rel="noopener"><span style="font-family: Aptos, sans-serif; border: 1pt none windowtext; padding: 0cm;">Australians lost $2 billion to scams</span></a><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;"> in 2024.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Gambling – </span><a style="color: #467886;" href="https://aifs.gov.au/research/research-snapshots/gambling-participation-and-experience-harm-australia" target="_blank" rel="noopener"><span style="font-family: Aptos, sans-serif; border: 1pt none windowtext; padding: 0cm;">46 per cent of gamblers are at risk of harm</span></a><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">, including losing their home.</span></li> <li><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Housing unaffordability – soaring prices (and stamp duty) push home ownership out of reach.</span></li> </ul> <p><span style="font-family: Aptos, sans-serif; color: #242424; border: 1pt none windowtext; padding: 0cm;">Women often face the brunt of these effects, disadvantaged by the gender pay gap, having less in superannuation, often having primary or sole custody of children, and having less secure employment.</span></p> <p><span style="border: 1pt none windowtext; padding: 0cm;"><strong>How can you protect yourself?</strong></span></p> <p><span lang="EN-GB">Thankfully, there are steps we can all take to protect ourselves and our retirement:</span></p> <ul> <li><span lang="EN-GB">Get your foundations right for a strong financial footing – emergency fund, spending and investment plan, insurances, superannuation, estate planning.</span></li> <li><span lang="EN-GB">Make decisions jointly – letting your partner control finances alone means more risk for you and less spending oversight.</span></li> <li><span lang="EN-GB">Have contingency plans – your own bank account, independent financial and retirement plans, insurances, and back-up plans just in case.</span></li> <li><span lang="EN-GB">Get into the market ASAP – even a cheap investment property far from where you live is a financial asset and a roof over your head if needed.</span></li> <li><span lang="EN-GB">Consider co-ownership – if you can’t afford to buy property alone, split the purchase and ongoing costs with an adult child, sibling, or close friend. Alternatively, sub-let a room to offset the costs.</span></li> <li><span lang="EN-GB">Don’t settle for less – avoid accepting an unreasonable separation settlement just to resolve things quickly.</span></li> <li><span lang="EN-GB">Be alert – know the warning signs of scams, elder abuse, gambling addiction and domestic violence to avoid losing everything.</span></li> <li><span lang="EN-GB">Get independent advice – professional legal, accounting, and financial advice can help you build financial independence, create safeguards, and recover faster if disaster does strike.</span></li> </ul> <p><span lang="EN-GB">Overall, the best thing you can do is simply to act. By being proactive instead of burying your head in the sand, your future self stands a much better chance of enjoying a comfortable retirement!</span></p> <p><strong><span style="line-height: 18.4px; font-family: Calibri, sans-serif; color: #242424;">Helen Baker is a licensed Australian financial adviser and author of the new book, <em>Money For Life: How to build financial security from firm foundations (Major Street Publishing $32.99).</em> Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children<em>. </em>Find out more at </span></strong><a style="color: #467886;" title="http://www.onyourowntwofeet.com.au/" href="http://www.onyourowntwofeet.com.au/" target="_blank" rel="noopener"><strong><span style="line-height: 18.4px; font-family: Calibri, sans-serif;">www.onyourowntwofeet.com.au</span></strong></a></p> <p><strong><em><span style="line-height: 18.4px; font-family: Calibri, sans-serif; color: #242424;">Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754.</span></em></strong></p> <p><em><span style="line-height: 18.4px; font-family: Calibri, sans-serif; color: #242424;">Image: Shutterstock</span></em></p> <p> </p>

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Most retirees who rent live in poverty. Here’s how boosting rent assistance could help lift them out of it

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>; <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>, and <a href="https://theconversation.com/profiles/matthew-bowes-2316740">Matthew Bowes</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a></em></p> <p>Most Australians can look forward to a comfortable retirement. More than three in four retirees own their own home, most report feeling comfortable financially, and few suffer financial stress.</p> <p>But our new Grattan Institute <a href="https://grattan.edu.au/report/renting-in-retirement-why-rent-assistance-needs-to-rise/">report</a> paints a sobering picture for one group: retirees who rent in the private market. Two-thirds of this group live in poverty, including more than three in four single women who live alone.</p> <hr /> <p><iframe id="x2VND" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/x2VND/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <p>Retirees who rent often have little in the way of retirement savings: more than half have less than A$25,000 stashed away. And a growing number of older Australians are at risk of becoming homeless.</p> <p>But our research also shows just how much we’d need to boost Commonwealth Rent Assistance to make housing more affordable and ensure all renters are able to retire with dignity.</p> <h2>Today’s renters, tomorrow’s renting retirees</h2> <p>Home ownership is falling among poorer Australians who are approaching retirement.</p> <p>Between 1981 and 2021, home ownership rates among the poorest 40% of 45–54-year-olds fell from 68% to just 54%. Today’s low-income renters are tomorrow’s renting retirees.</p> <p>Age pensioners need at least $40,000 in savings to afford to spend $350 a week in rent, together with the <a href="https://www.servicesaustralia.gov.au/age-pension">Age Pension</a> and <a href="https://www.servicesaustralia.gov.au/rent-assistance">Rent Assistance</a>. That’s enough to afford the cheapest 25% of one-bedroom homes in capital cities.</p> <p>But Australians who are renting as they approach retirement tend to have little in the way of retirement savings. 40% of renting households aged 55-64 have net financial wealth less than $40,000.</p> <h2>Rent assistance is too low</h2> <p>Our <a href="https://grattan.edu.au/report/renting-in-retirement-why-rent-assistance-needs-to-rise/">research</a> shows that Commonwealth Rent Assistance, which supplements the Age Pension for poorer retirees who rent, is inadequate.</p> <p>The federal government has <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/speeches/budget-speech-2024-25">lifted the maximum rate of Rent Assistance</a> by 27% – over and above inflation – in the past two budgets. But the payment remains too low.</p> <p>A typical single retiree needs at least $379 per week to afford essential non-housing costs such as food, transport and energy.</p> <p>But we found a single pensioner who relies solely on income support can afford to rent just 4% of one-bedroom homes in Sydney, 13% in Brisbane, and 14% in Melbourne, after covering these basic living expenses.</p> <p>With Rent Assistance indexed to inflation, rather than low-income earners’ housing costs, the maximum rate of the payment has increased by 136% since 2001, while the rents paid by recipients have increased by 193%.</p> <h2>A boost is needed</h2> <p>Our analysis suggests that to solve this problem, the federal government should increase the maximum rate of Rent Assistance by 50% for singles and 40% for couples.</p> <p>The payment should also be indexed to changes in rents for the cheapest 25% of homes in our capital cities.</p> <p>These increases would boost the maximum rate of Rent Assistance by $53 a week ($2,750 a year) for singles, and $40 a week ($2,080 a year) for couples.</p> <p>This would ensure single retirees could afford to spend $350 a week on rent, enough to rent the cheapest 25% of one-bedroom homes across Australian capital cities, while still affording other essentials.</p> <p>Similarly, retired couples would be able to afford to spend $390 a week on rent, enough to rent the cheapest 25% of all one- and two-bedroom homes.</p> <hr /> <p><iframe id="EZBuw" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/EZBuw/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <h2>Unlikely to push up rents</h2> <p>One common concern is that increasing Rent Assistance will just lead landlords to hike rents. But we find little evidence that this is the case.</p> <p>International studies suggest that more than five in six dollars of any extra Rent Assistance paid would benefit renters, rather than landlords.</p> <hr /> <p><iframe id="qGxQE" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/qGxQE/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <p>In Australia, there’s little evidence that recent increases in Rent Assistance have pushed up rents.</p> <p>Our analysis of NSW rental bond lodgement data suggests areas with higher concentrations of Rent Assistance recipients did not see larger rent increases in the year after the payment was boosted.</p> <p>That’s not surprising. Rent Assistance is paid to tenants, not landlords, which means tenants are likely to spend only a small portion of any extra income on housing.</p> <p>Since rates of financial stress are even higher among younger renters, we propose that any increase to Rent Assistance should also apply to working-age households.</p> <p>Boosting Rent Assistance for all recipients would cost about $2 billion a year, with about $500 million of this going to retirees.</p> <p>These increases could be paid for by further <a href="https://grattan.edu.au/report/super-savings-practical-policies-for-fairer-superannuation-and-a-stronger-budget/">tightening superannuation tax breaks</a>, <a href="https://grattan.edu.au/report/housing-affordability-re-imagining-the-australian-dream/">curbing negative gearing and halving the capital gains tax discount</a>, or counting more of the value of the family home in the Age Pension assets test.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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/249134/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, Program Director, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>; <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, Deputy Program Director, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>, and <a href="https://theconversation.com/profiles/matthew-bowes-2316740">Matthew Bowes</a>, Associate, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>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/most-retirees-who-rent-live-in-poverty-heres-how-boosting-rent-assistance-could-help-lift-them-out-of-it-249134">original article</a>.</em></p> </div>

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Anthony Albanese fast-tracks cost of living relief

<p>Prime Minister Anthony Albanese is set to fast-track legislation to introduce new measures to help struggling families and students during the ongoing cost of living crisis. </p> <p>The legislation will be introduced to parliament in the next two weeks which will include a guarantee of three days of subsidised childcare each week for Australian families, and will make fee-free TAFE permanent.</p> <p>The Labor government said three days of subsidised childcare is “about putting in place the building blocks for a universal childcare system”, with Education Minister Jason Clare saying the policy “is fundamentally about making sure every child gets a great start in life and start school ready to learn."</p> <p>“At the moment the children who need early education the most can’t access it,” Clare said.</p> <p>“They are missing out. As a result they start school behind and often never catch up. This will help fix that. Every child has the right to go to school — and governments have a responsibility to make that possible."</p> <p>“We believe every child has the right to go to early education, to help make sure they don’t start school behind — and our Labor government is going to make this possible.”</p> <p>Passing laws to make fee-free TAFE permanent will save “students thousands of dollars to train in key occupations, while delivering the skilled workers Australia needs”, the Albanese government said.</p> <p>“Our focus is on Building Australia’s Future while helping with the cost of living now,” Leader of the House Tony Burke said.</p> <p>“This fortnight we’ll continue delivering on that agenda — securing cost-of-living support for families through childcare reforms, while setting up our future prosperity through skills, training and future industry,” Burke said.</p> <p>Opposition Leader Peter Dutton has opposed most cost-of-living measures, claiming they will have the opposite effect by pushing up inflation and delaying interest rate cuts.</p> <p>However, underlying inflation is now sitting at 3.2 per cent, and most economists believe the Reserve Bank will cut rates on February 18th.</p> <p><em>Image credits: LUKAS COCH/EPA-EFE/Shutterstock Editorial</em></p>

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Home ownership is slipping out of reach. It’s time to rethink our fear of ‘forever renting’

<div class="theconversation-article-body"> <p><em><a href="https://theconversation.com/profiles/dorina-pojani-413644">Dorina Pojani</a>, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a></em></p> <p>A wide range of voices in the Australian media have been <a href="https://www.theguardian.com/australia-news/2024/dec/05/share-with-parents-or-rent-forever-i-have-put-life-on-hold-while-trying-to-buy-a-house">sounding the alarm</a> about the phenomenon of “forever-renting”.</p> <p>This describes a situation in which individuals or families are <a href="https://www.abc.net.au/news/2024-08-10/young-people-priced-out-of-home-ownership/104202602">unable to transition</a> from renting to home ownership, due to rising property values and wages that can’t keep up.</p> <p>Forever-renting is often framed as a terrible condition that should be avoided at all costs – that renting is only acceptable in the short term, as an individual or family saves for a down-payment.</p> <p>The underlying implication is that the ultimate goal in life for just about every Australian should be to own a house – or at least a condominium unit.</p> <p>This only serves to stigmatise renters, who currently make up <a href="https://www.abs.gov.au/statistics/people/housing/housing-occupancy-and-costs/2019-20">nearly a third</a> of Australian households. Demographic research indicates <a href="https://www.jstor.org/stable/24639395">about 15% of Australia’s population</a> changes address every year. Many of these moves require rental accommodation.</p> <p>And, yes, millions of Australians will <a href="https://www.ahuri.edu.au/analysis/news/rising-proportion-forever-renters-requires-tax-and-policy-re-think">rent for their whole life</a>.</p> <p>Clearly, we need to change our thinking around renting to bring it into step with reality. We must accept that the proportion of renters may never go down – or may even increase – and that that’s not necessarily a bad thing.</p> <h2>Where did this attitude come from?</h2> <p>The Australian tradition of home ownership was established in the early decades of European settlement. To make what we now call the “Australian dream” happen, the continent had to be treated as a <em>tabula rasa</em>, or blank slate. A mass of Indigenous people were <a href="https://theconversation.com/refugees-in-their-own-land-how-indigenous-people-are-still-homeless-in-modern-australia-55183">dispossessed</a>.</p> <p>Migration to Australia offered impoverished Britons an opportunity to own a house and plenty of land. In the old country, in contrast, real estate ownership had been a privilege of the gentry. Postwar waves of immigrants from southern Europe and East Asia were also intent on home ownership.</p> <p>In a low-density nation with smallish cities and cheap land, owning a home made sense. Now, urban land is no longer cheap and our <a href="https://www.apimagazine.com.au/news/article/scale-of-urban-sprawl-in-australia-hurting-more-than-just-the-environment">cities have sprawled</a> beyond what’s sustainable.</p> <h2>Renting can have advantages</h2> <p>The first step towards rethinking renting as a norm is acknowledging it can have some significant and often overlooked advantages. For some, renting is a <a href="https://www.emerald.com/insight/content/doi/10.1108/09604521011027598/full/html">lifestyle preference</a>.</p> <p>Ownership comes with burdens such as house and garden maintenance. This makes renting much more convenient and carefree for some demographics, including young people and older adults.</p> <p>Another key advantage of renting is the <a href="https://www.google.com.au/books/edition/Homeownership_and_the_Labour_Market_in_E/GwoUDAAAQBAJ">employment flexibility</a> it can provide. Renters can look for work outside their commute range and are less tied to particular employers.</p> <p>There’s some evidence that high levels of home ownership could even damage the overall labour market.</p> <p>Previous <a href="https://www.nber.org/papers/w19079">research</a> by the US National Bureau of Economic Research has shown that increasing home ownership leads to less labour mobility, longer commutes, and fewer new businesses because homeowners are less likely to move.</p> <h2>Safe as houses?</h2> <p>One common argument against renting is that investing in your own home is a “safe bet”. But we perhaps need to rethink this unquestioned reliance on housing as a store of wealth. Those who enter the housing market for investment purposes should be aware of several issues.</p> <p>Over the long term, housing prices have historically shown a <a href="https://www.dpn.com.au/articles/house-price-growth-australia-over-30-years">general upward trajectory</a>, driven by population growth and limited land supply in desirable areas.</p> <p>In the short term, however, housing prices can be <a href="https://press.uchicago.edu/ucp/books/book/chicago/H/bo20832545.html">quite volatile</a>. They may move up, down, or stay the same. This depends on broader economic cycles, market conditions and interest rates.</p> <p>Think of the housing bubble in the United States, which led to a global recession in 2008, or the <a href="https://www.abc.net.au/news/2025-01-07/china-property-crash-a-warning-for-australian-housing-market/104788660">current downturn in China</a>.</p> <p>The cycles in property prices are often worsened by <a href="https://www.jstor.org/stable/1914185">psychological biases</a> that can lead to overoptimism during booms or panic during busts. Investors may win or lose.</p> <h2>Compounded by climate change</h2> <p>In the contemporary era, we also need to factor in climate change. Areas that are currently desirable may become unappealing before too long – due to <a href="https://www.climatecouncil.org.au/resources/how-hot-will-your-neighbourhood-be-by-2050/">heatwaves</a>, <a href="https://theconversation.com/one-of-the-most-extreme-disasters-in-colonial-australian-history-climate-scientists-on-the-floods-and-our-future-risk-178153">floods</a> or <a href="https://theconversation.com/la-is-on-fire-how-will-australia-cope-when-bushfires-hit-sydney-melbourne-or-another-major-city-246967">fires</a>.</p> <p>Natural disasters, or even just growing disaster risks, can prompt large drops in property prices and massive population movements.</p> <p>To illustrate: during the pandemic, South East Queensland began to draw many domestic migrants as other states struggled to contain the virus.</p> <p>People from cooler southern states were also attracted by the region’s mild winter climate. In 2024, Brisbane became Australia’s <a href="https://www.realestate.com.au/news/uneven-price-growth-reshuffles-rankings-of-australias-most-expensive-cities/">second-most expensive</a> city for property values.</p> <p>That might appear to bode well for property buyers who’ve invested millions of dollars. But one <a href="https://rmets.onlinelibrary.wiley.com/doi/abs/10.1002/joc.5998">2019 study</a> has predicted that temperature rises could make Brisbane “<a href="https://www.abc.net.au/news/2019-06-22/temperature-increases-from-climate-change-brisbane-unliveable/11227404">unbearably hot</a>” by 2050.</p> <p>In this context, renters may be more adaptable than owners.</p> <h2>A more renter-friendly Australia</h2> <p>None of this is to argue that everyone should be a renter, or that renters should be left to the whims of the market.</p> <p>In Australia, current rent increases are <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release">outpacing</a> both wage growth and inflation (CPI). The rental affordability crisis has driven a <a href="https://homelessnessaustralia.org.au/rough-sleeping-surges-as-homelessness-crisis-worsens-new-report/">recent surge</a> in homelessness.</p> <p>There is a wide range of policy tools available to us, many of which have been shown to <a href="https://www.abc.net.au/news/2024-10-16/build-to-rent-fix-housing-crisis-australia-us-uk-hong-kong/104458458">work relatively well in other countries</a> and could be adopted here.</p> <p>These include:</p> <ul> <li> <p><a href="https://thefifthestate.com.au/housing-2/the-case-for-rent-control-and-historical-norms-in-rent-increases/">rent caps</a>, which tie allowable rent increases to the CPI (Australia already <a href="https://treasury.gov.au/sites/default/files/2019-03/round5-5.pdf">regulates the price of utilities</a> in this way)</p> </li> <li> <p>nationwide no-ground eviction bans (already in place in <a href="https://www.choice.com.au/money/property/renting/articles/no-grounds-evictions-update">some states</a>)</p> </li> <li> <p>normalisation of <a href="https://www.abc.net.au/news/2021-06-28/how-to-find-a-long-term-rental-home/100217074">long-term leases</a> beyond 12 months and restrictions on <a href="https://cities-today.com/barcelona-set-to-ban-short-term-rentals/">short-term rentals such as Airbnb</a></p> </li> </ul> <p>More vulnerable renters, including people with disabilities, single parents, victims of domestic abuse, those on low incomes, and older retirees, need extra protections.</p> <p>The supply of rental units should also be increased, through <a href="https://www.ahuri.edu.au/analysis/brief/what-build-rent">build-to-rent</a> and <a href="https://www.statedevelopment.qld.gov.au/news-and-events/granny-flats-provide-housing-choice-in-tight-rental-market">granny flat</a> construction, for example.</p> <p>Landlords should not be vilified either. In an unregulated market, they are often cast as “<a href="https://www.realestate.com.au/news/robber-barons-great-landlord-myth-exposed/">robber barons</a>” and “<a href="https://www.theguardian.com/commentisfree/2018/apr/16/landlords-social-parasites-last-people-should-be-honouring-buy-to-let">social parasites</a>”.</p> <p>If tenants were protected from excessive rent increases and evictions, landlordism could also be recast as an essential service that yields <em>reasonable</em> profits to providers.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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/245848/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/dorina-pojani-413644">Dorina Pojani</a>, Associate Professor in Urban Planning, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>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/home-ownership-is-slipping-out-of-reach-its-time-to-rethink-our-fear-of-forever-renting-245848">original article</a>.</em></p> </div>

Money & Banking

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Aussie drivers urged to cash in on $140 million in unclaimed funds

<p>The NSW government has urged Sydney motorists to access its toll road relief scheme, with $140 million left unclaimed since the cost-of-living support measure was introduced last year. </p> <p>Drivers who spend more than $60 in tolls weekly can claim the excess back under the "toll cap" introduced by the Minns government to help highly-tolled residents in Western Sydney. </p> <p>On Monday, Roads Minister John Graham said that while $75 million had already been paid to motorists, there's still $140 million yet to be claimed. </p> <p>“I want to remind motorists to get on to the Service NSW website and claim what they are entitled to in relief,” Graham said in a statement.</p> <p>Around 720,000 drivers are eligible for a slice of the payments. </p> <p>Over the past year, more than 276,000 claims were paid since the scheme was introduced, with an average claim of $277, according to the government. </p> <p>There were 115 suburbs where the average claim was $300 or more, including Parramatta, Lidcombe, Schofields, Westmead, Toongabbie, Merrylands and Auburn.</p> <p>“We know people are doing it tough and the toll cap is making it just that little bit fairer for drivers that heavily rely on the toll roads,” Graham said. </p> <p>He also added that reform talks with private toll road companies are still ongoing. </p> <p>In December, the government struck an in-principle deal with Transurban, a toll road operator, for a network-wide pricing system in attempt to ease the impact of toll payments on motorists. </p> <p>“The NSW government is progressing with toll reform to make tolls fairer overall,” Graham said on Monday. </p> <p><em>Image: Rose Marinelli / Shutterstock.com</em></p>

Money & Banking

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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"><em><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></em></p> <p>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?</p> <p>It’s a familiar scenario in today’s unpredictable housing market.</p> <p>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.</p> <h2>A grim time for many renters</h2> <p>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>.</p> <p><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.</p> <p>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.</p> <h2>A breakdown of typical moving costs</h2> <p>We’ll start with the most obvious expense: <strong>moving costs</strong>.</p> <p>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.</p> <p>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>.</p> <p>The moving costs between states or cities will be more expensive if you move further away.</p> <p>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.</p> <p>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>.</p> <p>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.</p> <p>End-of-lease or <a href="https://firstcallhomeservices.com.au/service-menu/bond-exit-end-lease-cleaning/"><strong>bond cleaning</strong></a> is another common expense.</p> <p>For a typical three-bedroom property, internal cleaning can range from $365 to $500.</p> <p>If you have pets, or kids who love drawing on the walls, your cleaning costs might be a bit higher.</p> <p>Now, let’s look at <strong>utility connection expenses</strong> that can catch people by surprise.</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>However, there are also <strong>non-financial costs</strong>, like the time spent searching for a new home, attending inspections, and putting in applications.</p> <p>Moving takes effort and energy for packing, transporting and unpacking.</p> <p>Some people feel emotionally attached to their current home, which can make leaving harder.</p> <p>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.</p> <p>Plus, moving can take <a href="https://www.nature.com/articles/s41537-023-00349-w">an emotional toll</a>.</p> <h2>The benefits of not moving</h2> <p>The clear benefit of staying is <strong>avoiding the hassle</strong> of relocating.</p> <p>Staying means saving on moving expenses and avoiding the time spent searching for a new place, packing and unpacking.</p> <p>This may also save some people from needing to take time off work.</p> <p>Changing and updating an address is also another tedious task that can be avoided by staying.</p> <p>Moving can hit the hip pocket with “<strong>after moving costs</strong>” that people may not initially consider.</p> <p>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.</p> <p>For drivers, increased fuel and parking expenses might also come into play.</p> <p>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.</p> <h2>To move or not to move?</h2> <p>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.</p> <p>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.</p> <p>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.</p> <p>So is it cheaper to move or stay when your rent increases by 10%?</p> <p>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.</p> <p>The right choice depends on your situation.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><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></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>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>.</em></p> </div>

Money & Banking

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"It's been terrible": Relief for 102-year-old trapped in unit for over a month

<p>102-year-old Joan Mather had been stuck inside her home at the St Kilda Memorial Hall in Melbourne for 32 days after the lift broke down. and now she's finally free. </p> <p>Mather was trapped inside her third-storey apartment as she is unable to use the stairs due to her age. </p> <p>"It's been terrible. I used to love to go to the doctor," Mather told <em>A Current Affair</em>.</p> <p>"I can't even talk to the doctor. I've got to talk to him or her on the phone.</p> <p>"This is the second time this has happened. When are we going to have a lift which you rely on?"</p> <p>Concerned neighbours have been checking in on the centenarian, who was left "totally isolated" if it weren't for a few visitors who were able to walk up to the top floor. </p> <p>"She's been very lonely," fellow resident Gill said.</p> <p>"For a 102-year-old, Joan is very active.</p> <p>"She's used to coming down for a coffee and maybe a wine, and (she has been) totally isolated now except for people who can walk up to the top floor."</p> <p>Mather was born on June 17, 1922, and served in the Women's Auxiliary Air Force during WWII, before moving to Australia with her husband in the 50s. </p> <p>A spokesperson for Otis Elevators, who was working on the Memorial Hall issue said:  "We will continue to work closely with the building management to alleviate the flooding issue and return the lift to service as soon as possible." </p> <p>"We apologise for any disruption caused to the residents."</p> <p>The elevator was finally fixed on Thursday afternoon and Mather celebrated with a glass of champagne at St Kilda's Heroes Lounge bar.</p> <p><em>Images: Nine/ A Current Affair</em></p>

Caring

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A bee-autiful new solution for osteoarthritis relief

<p>Living with osteoarthritis can be a daily struggle, marked by pain, stiffness and limited mobility. For the millions of Australians affected each year, finding an effective and safe treatment is crucial – especially one without the unpleasant side effects so common to conventional treatments.</p> <p>That’s where <a href="https://www.raydel.com.au/shop" target="_blank" rel="noopener">Abexol</a> steps in: a new, naturally derived solution that is making waves in the health community thanks to a very surprising ingredient: Beeswax alcohols!</p> <p>Abexol was originally discovered during a study into gastrointestinal issues. Participants in the study not only experienced relief from stomach issues, but also noticed a marked decrease in joint pain. It was this lucky discovery that led researchers to explore Abexol’s dual benefits for joint and gastrointestinal health.</p> <h2>The bee-nefits of Abexol</h2> <p>Recently registered with the Therapeutic Goods Administration (TGA), Abexol is poised to revolutionise the way we approach osteoarthritis management. That’s because traditional treatments often come with a host of gastrointestinal side effects, including nausea, diarrhoea, heartburn and gastritis just to name a few.</p> <p>Abexol, on the other hand, offers a unique solution by protecting the gastrointestinal tract and improving gut health, all while addressing joint pain at the same time – making it a truly holistic approach to such a widespread issue among Aussie seniors.</p> <p>It’s worth noting that a lot of traditional osteoarthritis treatments are also fish-based, such as glucosamine, chondroitin, or fish oils. For people with fish allergies, this is obviously a huge problem. Abexol provides a safe, non-fish-derived alternative, effectively managing arthritis pain and inflammation without the risk of allergic reactions.</p> <p>Abexol is also rich in powerful antioxidants that shield the body’s cells from damage caused by free radicals. These harmful molecules can arise from normal metabolic processes or external sources like pollution and smoking. By neutralising free radicals, antioxidants help reduce the risk of developing chronic diseases.</p> <p><img src="https://oversixtydev.blob.core.windows.net/media/2024/07/RAYDEL-Abexol2_1280.jpg" alt="" width="1280" height="716" /></p> <p>Abexol’s high bioavailability also ensures that the body can absorb it without issue. As the only beeswax-alcohols-based product registered by the TGA for treating mild arthritis and osteoarthritis while supporting stomach health, Abexol could well be the game-changer you have been searching for.</p> <p>According to Sarah Munnik, the Australian Market Access and Development Manager of Abexol, “Beeswax and derivatives of beeswax have been known to have great medicinal benefits, and have been used for hundreds of years across continents such as Africa, South America and Asia.</p> <p>“Ninety per-cent of our customers that have tried Abexol have loved it and have found that it’s either really helped to improve their joint pain and stiffness or supported their digestion and relieved gastric discomfort.”</p> <p>Abexol’s natural composition, lack of side effects and additional gastroprotective benefits clearly make it a standout choice. So embrace the future of osteoarthritis management with Abexol and get ready to step into a life of greater comfort and freedom.</p> <p>For more information, head to <a href="https://www.raydel.com.au/shop" target="_blank" rel="noopener">https://www.raydel.com.au/shop</a> – and don’t forget to take advantage of our special Over60 offer by entering the discount code Over60 for 15% off your purchase!</p> <p><em>Images: Shutterstock | Supplied</em></p> <p><em>This is a sponsored article produced in partnership with Raydel.</em></p>

Body

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How to sign up for energy bill relief

<p>In the face of rising living costs, thousands of Australians have turned to their energy providers for financial assistance, highlighting the community spirit and support available during these challenging times. Energy companies like AGL Australia and Energy Australia are stepping up to help their customers manage their bills and find relief.</p> <p>AGL Australia has seen a significant increase in its financial hardship program, with 10,000 customers joining in the past year. Energy Australia receives 1,000 calls every weekday from customers seeking bill relief. These numbers reflect the proactive measures Australians are taking to manage their expenses and the readiness of energy providers to offer support.</p> <p>Crystal Noronha, who has worked at the AGL call centre for 11 years, has witnessed firsthand the growing need for assistance. "There's a lot of distress in their voice, there's anxiety," Noronha <a href="https://www.9news.com.au/national/thousands-of-customers-signing-up-for-energy-bill-relief-with-millions-more-eligible/9dc9535b-f94b-42f4-aeaf-6534dc898df2" target="_blank" rel="noopener">shared with 9NEWS</a>. "Some hide away from sharing their difficulties, but we're here to help them."</p> <p>Customers need not face extreme financial hardship to seek help, as everyone is eligible for some form of assistance.</p> <p>Gavin Dufty, from the charity St Vincent De Paul, underscores the commitment of energy companies to support their customers. "Every energy company has a legal obligation to provide support for all households regardless," Dufty explains. The assistance offered varies based on the provider and individual circumstances, ranging from bill extensions and more manageable payment plans to, in some cases, complete debt waivers.</p> <p>Adding to this support, the federal government is taking significant steps to ease the burden on households. Starting July 1, every household will receive a $300 credit into their energy account, providing substantial relief. Additionally, a free government website is available for customers to compare energy plan prices and find the most cost-effective options.</p> <p>These measures reflect a collaborative effort between energy providers and the government to ensure Australians can navigate the financial challenges of today's world. By offering practical solutions and financial relief, they are making a positive impact on the lives of many, ensuring that no one is left to face these difficulties alone.</p> <p><em>Image: Getty</em></p>

Money & Banking

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

<div class="theconversation-article-body"><em><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></em></p> <p>As home ownership moves further out of reach for many Australians, “rentvesting” is being touted as a lifesaver.</p> <p>Rentvesting is the practice of renting one property to live in yourself, while simultaneously purchasing an investment property somewhere cheaper and leasing it out.</p> <p>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.</p> <p>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?</p> <h2>A rising tide lifts all boats differently</h2> <p>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.</p> <p>The first problem with this strategy, however, is that capital gains on housing are not always and everywhere equal.</p> <p>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.</p> <p>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.</p> <p>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>.</p> <h2>Different costs lead to different returns</h2> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <h2>Negative gearing offers little benefit</h2> <p>What about negative gearing? Property investors that generate losses on their property can deduct these costs against the tax bill on their other income.</p> <p>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.</p> <p>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.</p> <p>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.</p> <h2>Effects on housing affordability</h2> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <h2>We still need more houses</h2> <p>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.</p> <p>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.</p> <p>Rather than criticising those seeking a way though our housing market morass, we might instead redouble our efforts to increase the supply of housing.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><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></em></p> <p><em>Image credits: Getty Images </em></p> <p><em>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>.</em></p> </div>

Money & Banking

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Millions of Aussies set for power bill relief

<p>Millions of Aussies are set for some financial relief, with electricity costs set to drop by up to 7 per cent in the coming months. </p> <p>The Australian Energy Regulator (AER) and Victoria's Essential Services Commission (ESC) both released their draft default market offers - the maximum energy retailers are allowed to charge customers - for the 2024-25 financial year. </p> <p>Under the AER draft, residents in Sydney, Newcastle and the Hunter on the default offer will pay between 3 and 3.4 per cent less for electricity starting from July 1. </p> <p>The biggest drop is set for Victoria, with the ESC proposing a 6.4 per cent decrease. </p> <p>Those in Western Sydney, the Illawarra, and South Coast, will see their electricity bills decrease by 1.9 to 7.1 per cent. </p> <p>South Australians will receive a drop between 0.5 and 2.5 per cent. </p> <p>A number of small business customers will also benefit from lower power bill costs with 9.7 per cent for Sydney, Newcastle and the Hunter; 4.4 per cent for Western Sydney and the South Coast; 0.3 per cent for South-East Queensland; 8.2 per cent for South Australia; and 7 per cent for Victoria.</p> <p>Energy Minister Chris Bowen welcomed the news of lower power bill costs, but acknowledged that it will continue to play a part in the cost of living challenges faced by many Australians. </p> <p>"This is encouraging news," he said.</p> <p>"Encouraging for those small businesses and families who will receive lower energy bills as a result.</p> <p>"But nobody should suggest that there aren't real cost of living pressures around the world and in Australia, and energy prices are of course part of that and will continue to be."</p> <p>Not everyone will see a drop, with customers in the rest of regional NSW to get a small increase of 0.9 per cent, while the default offer for South East Queensland will increase by up to 2.7 per cent.</p> <p>While not all households are on the default offer, Bowen said that the AER's decision will also affect those not on the offer. </p> <p>"This either impacts directly or indirectly your energy bill," he said.</p> <p>"Directly for those on the default market offer. For those who aren't on the direct market offer, indirectly - the energy companies have to benchmark themselves against this, tell their consumers how they compare to this, and it provides very real pressure on them to match it.</p> <p>"If they don't, consumers will know about it and will make choices accordingly.</p> <p>"It's partly about those on the default market offer, but it actually impacts on all our bills indirectly."</p> <p>AER chair Clare Savage said that the cost of living crisis was the main contributor for their draft decision. </p> <p>"We know that economic conditions have put pressure on many Australians and the increases in electricity prices over the last two years has made energy less affordable for many households," she said. </p> <p>"In light of this, the AER has, in this decision, placed increased weight on protecting consumers." </p> <p>The draft decision is not final, with both the AER and ESC to receive consultation and feedback from stakeholders before confirming their default market offers in May.</p> <p><em>Image: Getty</em></p>

Money & Banking

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

<p>An Australian landlord has been slammed online for deciding to raise the rent on one of her struggling tenants before Christmas. </p> <p>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. </p> <p>The woman, who owns four rental properties, explained that the increase comes from the growing market value in the suburb the tenant lives. </p> <p>"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.</p> <p>"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."</p> <p>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. </p> <p>"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.</p> <p>"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."</p> <p>In the end, she decided to increase the tenant's rent. </p> <p>"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. </p> <p>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. </p> <p>"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.</p> <p>"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.</p> <p>A third person chimed, "Is this satire? Surely you aren't this much of an awful human being."</p> <p>"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.</p> <p>Others jumped to defend the landlord, claiming owning rental property is a business and not a charity. </p> <p>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."</p> <p><em>Image credits: X / Instagram </em></p>

Money & Banking

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Women forced to do shocking act for $100 rent reduction

<p>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. </p> <p>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.</p> <p>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. </p> <p>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".</p> <p>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". </p> <p>"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 <em>Yahoo News</em>. </p> <p>"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. </p> <p>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. </p> <p>The Senior Research Fellow also slammed the $100-a-week reduction in rent, calling it "grossly insufficient".</p> <p>"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.</p> <p>"That would be the appropriate response."</p> <p>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". </p> <p>"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. </p> <p><em>Images: Facebook</em></p>

Money & Banking

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"It was a relief": Rebecca Gibney opens up on mental health struggles

<p>Rebecca Gibney has revealed what a "relief" it was to finally open up about the mental health struggles she faced from 14 to 30-years-old. </p> <p>The New Zealand actress, 58, said she spent a lot of that time "pretending" she was okay despite growing up around domestic violence, as her mother suffered from abuse in the hands of Gibney's late father, Austin. </p> <p>In an interview with <em>Stellar</em> on Saturday, the <em>Packed to the Rafters </em>star shared that she is "loving" how mental health is now being framed. </p> <p>“When I started talking about my mental health struggles and anxiety ... it was a relief,” she told the publication. </p> <p>“I could drop the mask of pretending that I was OK. What I’m loving seeing is that more and more people are now going, ‘I’m not OK’”.</p> <p>Gibney first opened up about her struggles in 2017, when she opened up about the abuse her mother faced and how she was “beaten so badly she had bruises for six months on her legs.</p> <p>“She’d always shut the doors ... you’d hear the yelling and the shouting and the slapping, but you’d never actually see it," she told <em>Women's Day</em>, at the time. </p> <p>After Gibney's father died in 1982, the actress began seeing a therapist, but was "on Valium and in a dark place for quite a while”.</p> <p>In her latest interview with <em>Stellar</em>, Gibney also added that more needed to be done to prevent domestic violence and help survivors. </p> <p>“We still don’t want to talk about it. We need to really drill down (and question), ‘Why is this happening?’ We need more education, more centres," she said. </p> <p>“We need people to be able to get the help they need.”</p> <p><em>Images: Instagram</em></p> <p> </p>

Mind

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

<p>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. </p> <p>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"><em>nine.com.au</em></a> reader survey asked the question: Should children over the age of 18 pay board if they still live at home?</p> <p>The responses were many and varied, as a whopping 72 percent of respondents said grown up kids should be contributing financially to the household. </p> <p>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."</p> <p>Another wrote, "If the children over 18 are working, then yes, they should contribute or give money to the parents to bank for them."</p> <p>Others said children shouldn't be expected to pay board, and would rather their kids save money for bigger financial commitments.</p> <p>"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. </p> <p>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."</p> <p>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. </p> <p>"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. </p> <p>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."</p> <p>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. </p> <p>This sum is close to $100 billion more than in 2021. </p> <p>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.</p> <p><em>Image credits: Getty Images </em></p>

Money & Banking

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Homeowners often feel better about life than renters, but not always – whether you are mortgaged matters

<p><a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <em><a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a></em>; <a href="https://theconversation.com/profiles/hiroaki-suenaga-1477343">Hiroaki Suenaga</a>, <em><a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a></em>, and <a href="https://theconversation.com/profiles/ryan-brierty-1477346">Ryan Brierty</a>, <em><a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a></em></p> <p>Homeownership has long been thought of as the <a href="https://www.abc.net.au/news/2017-08-23/why-australians-are-obsessed-with-owning-property/8830976">great Australian dream</a>. For individuals, it’s seen as the path to adulthood and prosperity. For the nation, it’s seen as a cornerstone of economic and social policy.</p> <p>Implicit in this is the assumption that owning a home rather than renting one makes people better off.</p> <p>It’s an assumption we are now able to examine using data from the government-funded <a href="https://melbourneinstitute.unimelb.edu.au/hilda">Household, Income and Labour Dynamics in Australia</a> (HILDA) survey, which for two decades has asked questions both about homeownership and satisfaction with life.</p> <p>The <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0007/4694137/ContinuingPersonQuestionnaireW23M.pdf">overarching question</a> asks "all things considered, how satisfied are you with your life? Pick a number between 0 and 10 to indicate how satisfied you are".</p> <p>We also looked at people’s satisfaction with their financial situation, their home and the neighbourhood in which they live.</p> <p>In a study published in the journal <a href="https://journals.sagepub.com/doi/10.1177/00420980231190479">Urban Studies</a>, we linked those answers to home ownership and characteristics including age and income.</p> <p>As expected, we found homeowners were generally more satisfied with their lives than renters. But we also find the extent to which they were more satisfied depended on whether or not they were still paying off a mortgage.</p> <h2>Mortgaged homeowners about as satisfied as renters</h2> <p>Outright home owners were 1.5 times as likely to report high overall satisfaction as renters. But home owners still paying off a mortgage were only a little more likely to feel high overall satisfaction.</p> <p>Similarly, outright owners were 2.3 times as likely to report high financial satisfaction as renters – but mortgaged owners were only 1.1 times as likely.</p> <p>When it comes to satisfaction with their home and neighbourhood, the differences were less extreme.</p> <p>Outright home owners were 3.1 times as likely to report high satisfaction with their home as renters, while mortgaged owners were 2.8 times as likely.</p> <p>Outright owners were 1.6 times as likely to report high satisfaction with their neighbourhood as renters, and mortgaged owners 1.4 times as likely.</p> <p>The results also varied with age and income.</p> <hr /> <p><iframe id="hK9Ua" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/hK9Ua/3/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>As shown in the graph above, outright owners were more likely to report high financial satisfaction than renters across almost the entire age range.</p> <p>But mortgaged owners only showed a demonstrably greater financial satisfaction than renters between the ages of 25 and 50.</p> <p>Beyond age 50, the existence of a mortgage debt burden appeared to cancel out any boost to financial satisfaction from homeownership. This potentially reflects the growing financial stress of making mortgage payments as retirement approaches.</p> <hr /> <p><iframe id="f2GSl" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/f2GSl/3/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>By income, mortgaged owners reported experiencing more financial satisfaction compared to renters the more they earned between A$80,000 and A$240,000. Outright owners experienced more financial satisfaction than renters up to A$320,000.</p> <p>Beyond these income levels, owners did not have greater financial satisfaction than renters, perhaps because high-earning renters have other sources of financial satisfaction.</p> <h2>How satisfied people feel beyond 60</h2> <p>In other respects, outright owners and mortgaged homeowners showed similar patterns, becoming more satisfied with their homes relative to renters the more they age up – until the age of 60. That’s when their satisfaction relative to renters declined, as illustrated below.</p> <p>This decline might reflect the growing physical burden of maintaining an owned home as people age.</p> <hr /> <p><iframe id="oLrHz" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/oLrHz/2/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>Our study has important implications. One is that age matters.</p> <p>Although older people consistently express a desire to <a href="https://www.ahuri.edu.au/analysis/brief/whats-needed-make-ageing-place-work-older-australians">age in place</a>, we found satisfaction among those who owned vs rented their home declined beyond age 60. This suggests better integration between housing and care is critical to support people ageing in place.</p> <p>Another implication is that as low-income owners are more reliant on their homes as a source of relative financial satisfaction than high earners, they are <a href="https://www.cambridge.org/core/journals/journal-of-social-policy/article/housing-equity-withdrawal-perceptions-of-obstacles-among-older-australian-home-owners-and-associated-service-providers/268F54A8EAA1E9ECA118E243505AA9FD">more exposed</a> in times of crisis. They may face the risk of being forced to sell suddenly with little time to consider the consequences.</p> <p>And another implication is as the relative financial satisfaction of mortgage holders disappears after the age of 50, and as more of us approach retirement with mortgages intact, more of us will either <a href="https://journals.sagepub.com/doi/10.1177/00420980211026578">postpone retirement</a> or become dissatisfied.</p> <p>Our findings suggest the extension of mortgage debt into later life should be discouraged if the benefits of the Australian dream are to be preserved.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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/215147/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/rachel-ong-viforj-113482"><em>Rachel Ong ViforJ</em></a><em>, ARC Future Fellow &amp; Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/hiroaki-suenaga-1477343">Hiroaki Suenaga</a>, Senior Lecturer School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/ryan-brierty-1477346">Ryan Brierty</a>, PhD candidate, School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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/homeowners-often-feel-better-about-life-than-renters-but-not-always-whether-you-are-mortgaged-matters-215147">original article</a>.</em></p>

Home & Garden

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Princess Diana's childhood home up for rent

<p>The house Princess Diana spent her childhood and teenage years in is now available for the public to rent. </p> <p>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. </p> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>Now, the home is once again available to rent via Elysian Estates.</p> <p>"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.</p> <p>"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."</p> <p>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".</p> <p>Prices for the rental are not yet publicly available as an enquiry must be sent to reserve the opulent property.</p> <p>The listing stated that the stay includes "butler service, a team of private chefs and housekeeping, with a dedicated concierge service".</p> <p>Althorp is today most famous for being the final resting place of Princess Diana following her death in Paris.</p> <p><em>Image credits: Getty Images / Instagram</em></p>

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"Immense relief": Death cap mushroom survivor released from hospital

<p>Ian Wilkinson, the survivor of a suspected mushroom poisoning incident, has been discharged from Melbourne's Austin Hospital after spending two months in critical condition following a family gathering.</p> <p>Wilkinson, a Baptist pastor residing in the quaint South Gippsland town of Korrumburra, was among four individuals who fell seriously ill after consuming a beef Wellington dish suspected to have been contaminated with death cap mushrooms.</p> <p>Tragically, Wilkinson's wife, Heather, lost her life in the aftermath, as did Heather's sister, Gail Patterson, and her husband, Don.</p> <p>Ian managed to pull through, and his release from the hospital marked a significant milestone in his recovery. The Wilkinson family expressed their profound gratitude towards the hospital staff for their relentless dedication and exceptional care during this challenging period.</p> <p>"We are pleased to announce that Ian Wilkinson has made significant progress in his recovery and was released from Austin Hospital on Friday," the family said in a statement. "This milestone marks a moment of immense relief and gratitude for Ian and the entire Wilkinson family.</p> <p>"The Wilkinson family would like to extend their heartfelt thanks to the Leongatha, Dandenong and Austin Hospitals for their unwavering dedication and exceptional care that played a pivotal role in Ian's recovery.</p> <p>"The medical team's expertise and compassion have been a source of comfort and hope throughout this journey.</p> <p>"Additionally, the family is profoundly grateful for the outpouring of support, prayers, and well-wishes from the Korumburra community, church, friends, family, and colleagues.</p> <p>"This collective kindness has been a pillar of strength for Ian and the family, reinforcing the sense of unity and compassion that defines our community.</p> <p>"As Ian continues his journey towards full recovery, the Wilkinson family kindly requests that their privacy be respected."</p> <p>Meanwhile, the woman responsible for preparing the ill-fated meal, Erin Patterson, <a href="https://www.oversixty.com.au/finance/legal/details-of-erin-patterson-s-police-statement-around-fatal-mushroom-meal-revealed" target="_blank" rel="noopener">remains a suspect</a> as police homicide detectives continue their investigation into the three tragic deaths. She vehemently denies any wrongdoing.</p> <p><em>Image: Facebook</em></p>

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

<p><em><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></em></p> <p>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.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;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&amp;q=45&amp;auto=format&amp;w=600&amp;h=217&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=217&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=217&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=273&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=273&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=273&amp;fit=crop&amp;dpr=3 2262w" alt="horizontal bar chart showing changes in Australian renters' assessments of affordability form 2020 to 2022" /></a><figcaption><span class="caption">Change in Australian renters’ assessments of affordability from 2020 to 2022.</span> <span class="attribution"><span class="source">Baker, Daniel, Beer, et al, forthcoming, The Australian Housing Conditions Dataset, doi:10.26193/SLCU9J, ADA Dataverse</span></span></figcaption></figure> <p>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.</p> <p>The crisis has impacts well beyond affordability. The rental sector is where the worst housing accommodates the poorest Australians with the worst health.</p> <h2>The unhealthy state of rental housing</h2> <p>Forthcoming data from the <a href="https://dataverse.ada.edu.au/dataverse/ahcdi">Australian Housing Conditions Dataset</a> highlight some of these parallel challenges:</p> <ul> <li> <p>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</p> </li> <li> <p>rental housing quality is often very poor – 45% of renters rate the condition of their dwelling as “average, poor, or very poor”</p> </li> <li> <p>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</p> </li> <li> <p>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.</p> </li> </ul> <p>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.</p> <h2>It’s all about supply</h2> <p>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.</p> <p>Governments should be looking at multiple actions, including:</p> <ul> <li> <p>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</p> </li> <li> <p>improving land supply through better forecasting at the national, state and local levels</p> </li> <li> <p>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</p> </li> <li> <p>boosting the recruitment and retention of skilled construction workers from both domestic and international sources.</p> </li> </ul> <h2>The biggest landlord subsidy isn’t helping</h2> <p>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.</p> <p>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.</p> <p>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</p> <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> <p>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).</p> <p>This scheme is much less expensive per unit of affordable housing delivered than Australia’s system of negative gearing.</p> <p>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.</p> <p>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.</p> <h2>Crisis calls for lasting solutions</h2> <p>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.</p> <p>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.</p> <p>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.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><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></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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>.</em></p>

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What are your rights as an Airbnb renter in Australia? A law expert answers 6 common questions

<p><em><a href="https://theconversation.com/profiles/mark-giancaspro-182268">Mark Giancaspro</a>, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a></em></p> <p>Airbnb has revolutionised the short-stay industry. Launched in 2008, it now eclipses the world’s biggest hotel chains. In Australia alone there are about <a href="https://www.abc.net.au/news/2022-05-15/short-stay-rentals-airbnb-impact-on-australian-property-market/101019726">100,000 listed properties</a>.</p> <p>But in dealing with both a digital platform and a private owner (or “host”, in Airbnb-speak), your legal rights as a renter (or “guest”) can be unclear – at least without reading lengthy terms and conditions.</p> <p>This article answers six very common questions about using Airbnb in Australia. Please note that your legal rights may differ in other countries. Even if Airbnb’s terms and conditions are near identical – and they generally are – there may be differences in consumer laws.</p> <h2>What if an Airbnb property doesn’t match its description?</h2> <p>Airbnb’s <a href="https://www.airbnb.com.au/help/article/2908#6">terms and conditions</a> require the host to provide “complete and accurate information” about their property. Content, including photos, must be “up-to-date and accurate at all times”. Airbnb’s <a href="https://www.airbnb.com.au/help/article/2895/">Host Ground Rules</a> state that listings “should accurately describe the home and reflect the features and amenities that will be available”.</p> <p>If a property does not match its description or photos, <a href="https://www.airbnb.com.au/d/anz-prohost-resource-centre-support">report this to Airbnb</a>.</p> <p>False advertising will also likely breach the Australian Consumer Law, which prohibits (Section 18) commercial conduct that is misleading or deceptive or is likely to mislead or deceive. Report to the <a href="https://www.accc.gov.au/about-us/contact-us/report-a-consumer-issue">Australian Competition and Consumer Commission</a> here.</p> <p>There are no specific provisions to claim a refund or a discount for misleading listings. Your only recourse would seem be to initiate the cancellation policy that applies to your booking.</p> <h2>So when can I get a refund?</h2> <p>If you cancel your booking or leave the property early, your refund rights are determined by your <a href="https://www.airbnb.com.au/help/article/149">cancellation policy</a> (see “show trip details”).</p> <p>There are various <a href="https://www.airbnb.com.au/help/article/475">policies</a> (from which a host selects when listing). Most allow full refunds if you cancel one to five days prior to check-in, while others require up to 30 days’ notice or only provide partial refunds.</p> <p>If the host cancels on you, they <a href="https://www.airbnb.com.au/help/article/990">may be penalised</a> by Airbnb.</p> <h2>Can an Airbnb host impose harsh and unreasonable ‘house rules’?</h2> <p>If an owner wants to make rules against visitors without their permission or how many times you can use the washing machine, they generally can.</p> <p>When you rent a property through Airbnb, you are entering into a private agreement with the owner. Under contract law, they can stipulate whatever terms they like, so long as those rules aren’t illegal.</p> <p>What Australian Consumer Law does prohibit are <a href="https://www.accc.gov.au/business/selling-products-and-services/contracts#toc-unfair-terms-in-standard-form-contracts-">unfair terms</a> in standard form “consumer contracts” – which an Airbnb contract likely qualifies as. An unfair term is one that:</p> <ul> <li>causes a significant imbalance in your rights and obligations</li> <li>is not reasonably necessary to protect the host’s interests</li> <li>would cause you detriment (financial or otherwise) if it was enforced.</li> </ul> <p>The problem is that you will need to sue the host (that is, initiate civil litigation) to prove this.</p> <p>Your best option is to carefully review the rules before you confirm your reservation. Once you confirm, you are legally agreeing to all of the host’s terms whether you’ve read and understood them or not.</p> <p>If you disagree with a rule, ask the host to waive or amend it. If they won’t budge, your choice is to book or not.</p> <h2>What are the boundaries for an Airbnb host/owner?</h2> <p>Hosts are <a href="https://www.airbnb.com.au/help/article/3057">required</a> to ensure every property is secure and safe. Airbnb’s Community Policy states properties must be properly lockable and free of hazards, and hosts must be responsive and willing to answer guest queries within a reasonable time.</p> <p><a href="https://www.airbnb.com.au/help/article/3060?_set_bev_on_new_domain=1691395791_NmY1ZDNmZjQxZjQy">According to Airbnb</a>, a host cannot physically intrude or interfere with your stay. They can only re-enter their property (or a guest’s room in a shared stay) if there is an emergency or with express permission.</p> <p>In a shared stay, the host must not enter the bathrooms or guest bedrooms when the guests are inside. The host is also forbidden from sharing private details, photos, or videos of you without consent.</p> <p>Where your safety is threatened, you should contact law enforcement and notify Airbnb. If you decide to leave, you may be entitled to a partial refund. Your rights depend on the cancellation policy applying to your booking (discussed further below).</p> <h2>If I am injured in or get sick because of an Airbnb property, can I claim compensation?</h2> <p><a href="https://www.airbnb.com.au/help/article/2908#4.2">Clause 4.2</a> of Airbnb’s terms and conditions states that, by staying at a listed property, you acknowledge and “freely and willfully” accept the risk of “illness, bodily injury, disability, or death”.</p> <p>Further, clause 19 contains a broad disclaimer absolving Airbnb of any liability for “personal or bodily injury or emotional distress” incurred in using its services. Clause 20 also contains an indemnity preventing you from making any claim against Airbnb in relation to your stay.</p> <p>This gives Airbnb legal protection. But you may make a claim against the host.</p> <p>The first step would be to formally write to the host outlining your claim. Airbnb may also assist with any disputes. If this fails, you can sue the host but whether the cost and effort is worth it will depend on the extent of your injury or illness.</p> <p>If you do make any claim against the host, they will likely rely on Airbnb’s insurance. Every Airbnb host is insured up to US$1 million (about A$1.5 million) through Airbnb’s <a href="https://www.airbnb.com.au/help/article/3145">Host Liability Insurance Programme</a>. This covers any bodily injuries incurred by guests (or others) and damage to or theft of any property belonging to a guest (or others).</p> <p>There are some exceptions to what Airbnb’s insurance will cover, such as intentional violence, mould and communicable disease. If you want compensation for something the host is personally liable for, you are more likely to have to take legal action, using a lawyer. Consider the costs carefully.</p> <h2>What’s the maximum cleaning/damages fee an Airbnb host can charge?</h2> <p>Cleaning fees are <a href="https://www.airbnb.com.au/help/article/2812">set by the host</a>. Airbnb provides a <a href="https://www.airbnb.com.au/help/article/3171">pricing tool</a> to help them calculate a reasonable fee – generally <a href="https://www.igms.com/airbnb-cleaning-fee/">based on size and facilities</a> – but there is no maximum, presumably on the rationale that market forces (and reviews) will deter hosts from charging too much.</p> <p>Nor is there a maximum damages fee. You can formally <a href="https://www.airbnb.com.au/d/anz-prohost-resource-centre-support">dispute the amount</a> with Airbnb, which will determine if it is reasonable, relying on information provided by both parties.</p> <p>Charging exorbitant prices is not illegal though Australian Consumer Law does prohibit “<a href="https://www.accc.gov.au/business/selling-products-and-services/unfair-business-practices#toc-unconscionable-conduct">unconscionable conduct</a>”. But, again, you need to initiate legal proceedings and have a court agree you deserve compensation.</p> <h2>Where to go for help and advice</h2> <p>You can <a href="https://www.airbnb.com.au/d/anz-prohost-resource-centre-support">contact Airbnb</a> for any account, listing, or reservation-related questions. Online forums can also be useful for advice and support.</p> <p>You can report consumer complaints to the <a href="https://www.accc.gov.au/about-us/contact-us/report-a-consumer-issue">Australian Competition and Consumer Commission</a> but the federal regulator does not resolve individual complaints or provide legal advice on your rights and obligations. For preliminary advice go to the following state and territory consumer advice agencies:</p> <hr /> <p><iframe id="lhlWv" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/lhlWv/2/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p><em>Please note this article does not constitute legal advice. If you need legal advice, consult a lawyer.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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/211026/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></em></p> <p><em><a href="https://theconversation.com/profiles/mark-giancaspro-182268">Mark Giancaspro</a>, Senior Lecturer in Law, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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/what-are-your-rights-as-an-airbnb-renter-in-australia-a-law-expert-answers-6-common-questions-211026">original article</a>.</em></p>

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