Renters squeezed as prices rise again

By Marcus Power
Updated November 2 2012 - 1:04pm, first published January 12 2010 - 1:38pm

RENTS in Ballarat are set to rise again, putting more pressure on an already tight market for renters. Australian Property Monitors' Quarterly Rental Report said rents were expected to rise by an average of four per cent across the country this year.Real Estate Institute of Victoria Ballarat chairman John McMahon said Ballarat rental rates could exceed that figure."We're coming from a lower base (than capital cities). In both rental and purchase we have a lower median price," Mr McMahon said.Overall figures for the final quarter of 2009 for Ballarat would not be available until the end of this month, but it was expected the overall increase in the city would be about 10 per cent. He said vacancy rates in the city were at 0.7 per cent in November, and in the past year, rents for flats in Wendouree had climbed as much as 30 per cent.Population increases and first- home buyers purchasing former rental houses were among the factors that had contributed to the rental price hikes and the low vacancy rates."We have a lot of people coming to Ballarat to work. When they come here, in the first instance, they choose to rent."By contrast, rental markets across much of the country were flat for most of the past year, with an average increase of two per cent, the report said.Australian Property Monitors economist Matthew Bell said the global financial crisis had caused the slowdown, but landlords were likely to pass on the cost of this year's expected interest rate rises to tenants.An improving employment outlook would mean more income for renters to cope with the expected increases."However, this is just another cost on already tightening budgets for those Australians that did lose their jobs or were forced to move to part-time work during 2009," Mr Bell said. "The rental increases set for the year ahead will mean families will have to chase more affordable rentals even further from areas of potential employment."

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