| Kevin Young, President of Property Club said that the survey was terrible news for renters throughout Australia who are financially struggling with rising rents.
“This snap survey of Property Club members throughout Australia reveals that more than half of all renters will have to financially absorb the latest rise in interest rates.
“The survey found that 55.9 per cent would increase their weekly rents to pay for the interest rate rise, 14 per cent were unsure and 30.2 per cent said they would not increase their rents.
“Property Club has been warning the government for many months that increasing interest rates is voodoo economics because it only pushes up rents which are a key component of the inflation basket of goods that measure inflation,” he said.
Kevin Young added that renters were now suffering because of higher interest rates.
“Rents have exploded in Australia and will continue to do so as long as the RBA keeps increasing interest rates.
“Mum and dad property investors cannot be expected to constantly absorb the cost of rising interest rates as many are having to deal with cost of living pressures like everyone else.
“Higher interest rates have also seen a major fall in lending to property investors which means fewer rental properties are becoming available at a time when we are experiencing a housing crisis.
“Property Club is predicting that rising interest rates will result in the median weekly rent in Australian capital cities rising by over 20 per cent during the coming year.
“This will force many renters to live below the poverty line and even lose their home – a tragedy that should be firmly placed at the feet of the RBA Governor Philip Lowe.
“Property Club is urging the Federal Government to increase the supply of rental properties by removing recently imposed restrictions on interest only loans and restoring tax depreciation benefits to second hand properties that will result in lower priced rentals quickly entering the rental market”, he said.
Writtten and submitted as media Release by Kevin Young | Property Club Founder
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