Unfortunately, the rent for a property is almost dictated by how many people wants to live it. In today's rental market, I would not be surprise if the rent is higher than a mortgage's repayment.
In the Frankston area, just a short drive from where I live, the landlords are being opportunistic in trying to extract as much rent as possible. This article from the local paper discusses the sad state of affairs.
So, if you are renting, what you do to help with the rising rent rates.
- Move the an area with cheaper rent. Some suburbs has lower rent rates than others for many reasons. If you are happy with the reasons on the lower rent rate, consider moving to these locations.
- Negotiate with your landlord. Most land lords are reasonable people, and an attempt with communication with them shows that you are willing to discusses the crisis with them. In most cases, most land loads are happy with a good tenant with a reasonable rent rate than a bad tenant at a high rent rate.
- Know your tenant rights. If your land lord is not is reasonable, have a good knowledge of what your rights are. For rentals in the state of Victoria, you can contact the Consumer Affairs for more information. The are similar government bodies in the other states an territories.
- Consider purchasing a house. If the rent that you are paying is so high that it almost as high, if not higher, than a mortgage repayment, then consider purchasing a house. In today's market where new house purchases are declining, the developers are extremely accommodating in the terms and conditions. Have a chat with them. Be aware that purchasing a house is not something to be entered into lightly, it is littered with traps and pitfalls.
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