Yes, it’s terrible that the rise in interest rates means that some Rose Bay residents will have to only order two entrees rather than an entre and a main next time they dine at Catalina’s – but what about renters. “Uh?”, you say?
Well, tenants are likely to face rises in their rents as landlords – particularly landlords who have overgeared – seek to recover the costs of the rate rises. This is another burden for the growing numbers of Australians who haven’t benefited from the rise in house prices.
Housing advocates also note that the percentage of Australians who rent is roughly the same as the percentage of those who are paying off their home – around 25 per cent. They note who gets all the media attention – let alone policy pandering – with a certain resigned irony.
Yes, there are owners who will feel the pinch from interest rates rises, but they have other investment alternatives to housing and will at least get some capital growth – capital gains tax free – to ease their pain.
Renters get no relief from their poverty and political irrelevance. They remain a lost cause.