Rising interest rates to hit renters hard

INTEREST rate rises during the next two years is going to hit tenants hard as the cost of escalating mortgage payments is passed on to tennants. TENANTS can expect to pay out an extra $5 billion or more in the next two years as landlords push up rents to cover spiralling mortgage costs.
Property analyst Residex and the country's biggest real estate chain Ray White say the Reserve Bank's lifting of interest rates is flowing straight through to the rental market.
A shortage of available properties and increased population are adding to the rate pressure, with weekly rents expected to rise between $40 and $100 in the next two years.
"Every force in the marketplace will be driving rents higher,'' Ray White director Ben White says.
"The mortgages of rental property owners are becoming more expensive, so it's inevitable that this will result in rents going up,'' White says.


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