renters should get into the stock market

Just read an article about renters giving up hope.

good idea if you ask me

you are much better putting your money into stocks and living off the divis any day

divis have grown about 20% in the last ten years

owning is all about keeping up with the jones

forget it..dorks go down that road

read on
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Renters give up ownership hopes Font Size: Decrease Increase Print Page: Print By Colin Brinsden | April 03, 2008
MORE than half the nation's renters believe they will never be able to afford their own home with most blaming high interest rates, a survey has found.

The research found that 33 per cent of Australians rent their home compared to 67 per cent who have a mortgage or own their home outright.

The nationwide survey of 2501 respondents, for insurer AAMI, found 52 per cent of renters feel the dream of home ownership will never be affordable, although 39 per cent say they are happy to rent and have no plans to be saddled with a mortgage.

However, 37 per cent of renters still feel pressured to put a deposit on a home and 29 per cent say they have been financially disadvantaged because they don't own their own home.

Rate blow

AAMI's public affairs manager Geoff Hughes said interest rates were a major impediment to entering the housing market with 43 per cent of renters saying this influenced their decision to continue renting.

”With renters reluctant to enter the property market, competition for rental properties remains tight, with the research showing 15 per cent of renters nationally have been involved in bidding for a rental property,'' Mr Hughes said.

The survey also finds that as rents rise across the country, many tenants opt to sacrifice their home contents insurance to be able to make the rent, Mr Hughes said.

”Renters are increasingly looking for ways to save money to afford higher rents, which is forcing many to cut discretionary spending on insurance,'' he said.

Just 57 per cent of renters have home contents insurance compared with 98 per cent of homeowners and only 47 per cent of renters have bothered to update their contents insurance in the last five years