Varsity residents reconsider choice to rent

(By Jessica Davis - Bond University Journalism Student)

The Australian Bureau of Statistics (ABS) released figures stating renters on the Gold Coast spend the same proportion of their income on housing as mortgagees.

The average rent on the Gold Coast has risen $40 over the last two years, causing some residents to reconsider the economic viability of buying.

The ABS figures have shown that 18 percent of gross income is lost to landlords, the same proportion home owners spend on mortgage repayments.
Gold Coast property consultant Warren Stevens said rising interest rates, record population growth and the decreasing first homebuyers grant was driving rental prices up.

“Rent prices are entirely susceptible to external circumstances and will continue to change no matter what.”

“These statistics and the current circumstances will probably help push renters into taking advantage of the benefits of buying rather than renting,” he said.

“It isn’t uncommon for renters to get fed up with rising prices and take the option to buy.”

Varsity Lakes renter Michael Cutler said with how much of his wage goes toward rent, he may as well buy.

“If it’s going to be the same for me to rent as it would be to buy, I may as well have the benefits of that investment,” he said.

“For me, renting was the best option at the time but I think I may now need to look into my options again.”

ABS figures said future rent rises on the Gold Coast were expected to surpass Sydney’s predicted 18 percent rise over the next three years.