On tonights news (channel 9 adelaide) was a report about cheap housing for people ..The lady was able to buy a home instead of renting...no figure were given other than she was paying $240 a week rent (no mention of if that was before or after any rent assistance). her mortgage is now $200 so it was touted she was saving...
She then said the money goes into her own home...which technically is correct...if she was receiving rent assistance she would behind now...if not she now has extra costs on top of the mortgage...
Council rates are a minimum $1000..so half the saving is gone... add water /sewerage rates and the other half of her saving is gone...
lets assume she is working...if she lost her job..her mortgage payment remains the same, if she was renting she gets rent relief...
If interest rates go up she is paying more....
Even the RBA stated the pendulum is swinging towards the rental people for the forseeable future...before I get flamed down on how much property has gone up...stop... lets look at from today onwards...i repeat today onwards....will a home buyer or a renter be better off???
