I have lots of friends who are paying ridiculously high rent for their houses. Very rarely anything under $150 per week. How do people survive, paying such high rent. Will rent prices drop! If not, what on earth is going to happen to all of those people who are struggling to live? People won’t ever be able to save up for a deposit and own their own homes if this keeps up.
I have one lot of friends who pay $200 pw in rent and approx $200 pw in food. One of them is working ft and one is casual. I honestly don’t know how they do it.
Les woodsmanMember@woodsmanJoin Date: 2004Post Count: 714
Renting is generally cheaper than owning a property. (No paying for maintenance, building insurance, rates, land taxes etc and rent is generally less than an equivalent mortgage payment for the same property).
Should we (ie society) move on from the concept of home ownership to property invetsment ownership??
Yes, well that certainly is a question worth asking. But my actual point is that many people seem to be struggling just to pay rent. So, this makes me wonder how they will ever get a loan to own their own property, let alone an IP. I guess I can see that Wraps are going to become very popular.
I think the trend of pozz cashflow houses has meant that people refuse to get less than 10% rent for houses. Also the RE boom has meant that zields are so low, people have to up rents to justifz the investment.
As for me, I am a renter. The last place I lived in… the rent was only raised $10 in the eight years I was living there, and it looks like a similar situation is going to occur in my current house- it´s very reasonable rent. If rents rose in line with property prices, I´d have to buy a PPOR, I guess, but never under a wrap scheme.
kay henryPropertyGuruParticipant@propertyguruJoin Date: 2003Post Count: 1,502
$150 and $200 is cheap rent I guess! my friends are paying $300+
I want to be billionaire! 
Instead of pazing $300 rent, I´d rent in wollongong and commute- rents are much cheaper in wollongong. I´d even live in engadine … groan… $300 a week is such dead money- how could you save for a deposit?
These people must be on MASSIVE wages to be able to afford this kind of rent. I’m probably talking more then, about the people on an “average” or should I say “Low” wage. Many people only bring in around $400 pw as a wage!
LesDerekMember@derekJoin Date: 2004Post Count: 3,544
Notwithstanding the slight deterioration in home affordability I suspect your comments were made equally vehemently 10 years, 20 years and 50 years ago and they will again in 20 years time when people discuss both buying and renting property.
It’s all a matter of relativities.
Interestingly enough first home owners face a similar predicament we did when we started out, as did our grandparents and so on. Sure current mortgage payments may seem large but they are still proportionately less (as a percentage of average wages) than they were in 1988 peak – albeit marginally so.
DerekJetDollarsParticipant@jetdollarsJoin Date: 2003Post Count: 2,435
Currently I am renting $240pw. I don’t think it is a lot comparing to those who live in or near CBD paying $300+pw.
[Keep going, you’re on your way to Frolic Freedom!]hedrekMember@hedrekJoin Date: 2004Post Count: 1
>>WE ARE STRUGGLING!!! <<
Drugs ? Drink ? Gambling ? Big family ?
PiscesredwingParticipant@redwingJoin Date: 2003Post Count: 2,733
Hmmm struggling ??290=200+490
1200-490 = $610 per week in hand still or $ 2 440 per month
Maybe *write* down every time you spend $’s on something and at the end of each week see where your money is going..
Leswon – you say you can see Wrap’s becoming very popular ? Not for me, i wouldn’t buy a place under a wrap scheme, others would and do i suppose, but you pay higher than usual interest rate..
“Money is a currency, like electricity and it requires momentum to make it Effective”J A CMember@j-a-cJoin Date: 2004Post Count: 12
I actually have a friend around 10 years older than i am which makes him around 35. Now he is always saying how do i do it. How can i afford IP’s and how can i have a nice boat and how he is STRUGGLING making his repayments etc etc. And how he wants my money tree which is just a joke. AT the end of the day he is probably on very similar money to what i am. Which is very similar to what someone has posted around the $1200pw joint income. Not a great amount but enough to make do and get somewhere.
Now what he fails to see is that he HAS to have his beers at night his smokes during the day. Its all about priorities. Thats all it is.
As Redwing has already mentioned it really is an eye opener to write down where your money is going each week then do something about it because really $150 rent is VERY cheap.
Cheers.TringMember@tringJoin Date: 2004Post Count: 24
Hello Redwing, Sorry in advance, not trying to be picky, maybe a mistype?
$1200 – $490 = $710pw
ie $2840 per month.
Hedrek, $2840 in hand per month is alot of spare cash. Like Redwing said you need to record/budget what you spent.
StartAdministratorKeymaster@piadminJoin Date: 2013Post Count: 3,225
Redwing, Hedrek was talking about $ 1,200 takehome pay (i.e. $ 1,200 after tax !!)
PiscesHueyParticipant@hueyJoin Date: 2003Post Count: 213
Bills for phone, electricity, gas, rates, insurance, car registration, fuel ….are heaps.
Childcare & study costs are huge as well.
HueyANUBISParticipant@anubisJoin Date: 2003Post Count: 559
We pay $400 per week for rent, mind you we live in a house in Sydney. It’s a reward for living in 2 bed units for so long 
It does not affect our ability to invest, go out for a meal when we want. It makes our home life less stressful which makes it easier to focus on wealth creation.RubbachookMember@rubbachookJoin Date: 2003Post Count: 288
Chan$ – on an earlier post in this thread you say you rent. Didn’t you say in another thread that you bought your PPOR?
Why are you renting?Still in SchoolMember@still-in-schoolJoin Date: 2003Post Count: 1,844
One option i see available and occuring now in Sydney, in some of the inner western areas of Sydney, is leasing is becoming more readily available than having your property just simply up for rent…
leasing and wrapping, could play a major role in the very close future…