Interest Rates and You

Posted by Moishe Alexander

How interest rates affect you, whether you are a renter, owner or investor in the Australian property market.

With the current state of the economy, most are placing their bets firmly on more interest rate slashings for 2009.

Interest rates have a direct impact on everyone's finances, whether it's their mortgage payments, credit card bills or savings account. Understand where you fit in the grand scheme of all things interest rate related with these useful facts and statistics.

Renting Property

• 30% of Australians are renters (approx. 5 million people) - it's a tough and competitive market.
  
  
• In most capital cities, the vacancy rate of residential properties is about 1%.
  
  
• Fewer rental properties = higher rents:
  
  In Brisbane, rents are at an average of $295/week.
  In Sydney, rents are at an an average of $350/week.
  In Perth, rents are at an an average of $300/week.
  In Darwin, rents are at an an average of $360/week.
  
  
• 89% of renters experience negative psychological effects directly related to the dire rental climate.



• 33% of renter doubt that they will ever be able to afford their own home.



• The proposed a National Affordability Rental Scheme will see about 50,000 new rental properties built, hopefully easing strain across the country.
• Read more HERE