Question for people who rent their home?

[witches*wol]

ACA or one of those shows had a segment on people who rent reaching a point of no long being able to afford the increasing rental prices and ending up homeless.

They were not refering to "down and out" people but regular folk who had been cruising along renting nicely but then perhaps lost their jobs and could not afford to pay the rent on their homes anymore and having to either move in with family or live in their cars.

The bloke they interviewed (from some housing assoc) was saying that people who have rented all their lives and then hit retirement are suddenly realising that their super is not going to last very long while they are still paying $300 or more a week in rent and once their super is gone the age pension sure as hell wont cover it.

So what happens to people who do rent when they reach retirement?  Are we going to be looking at a growing group of homeless elderly people? 

[newstart2380]

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@witches*wol wrote:

ACA or one of those shows had a segment on people who rent reaching a point of no long being able to afford the increasing rental prices and ending up homeless.

They were not refering to "down and out" people but regular folk who had been cruising along renting nicely but then perhaps lost their jobs and could not afford to pay the rent on their homes anymore and having to either move in with family or live in their cars.

The bloke they interviewed (from some housing assoc) was saying that people who have rented all their lives and then hit retirement are suddenly realising that their super is not going to last very long while they are still paying $300 or more a week in rent and once their super is gone the age pension sure as hell wont cover it.

So what happens to people who do rent when they reach retirement?  Are we going to be looking at a growing group of homeless elderly people? 

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Its called being responsible for ones self and making sure in retirement we are self sufficient. People that don't plan for retirement and save for this day only have themselves to blame. Superannuation can be topped up with salary sacrificing and if people choose to spend and not save extra for their retirement they will suffer.

To many people expect to receive the pension which I believe should be paid to those who have paid taxes all their lives and need it, receiving the pension or part there of is something that should be a benifit not something that is taken for granted.

People who pay rent and could never afford their own home may have to look for cheaper accommodation, they would have had plenty of time to look to the future and plan for their retirement.

[i-need-a-martini]

I think for some their only option will be to move to less popular regional areas.

I'm not in a particularly flash area in Sydney but the median rental for a house in my suburb is $680. Considering there are an awful lot of 2 bedrrom dumps in that price, I'd hate to think what a decent house would get.

And that is cheap. A friend on mine is renting a 2 bedroom semi in Bondi for $900. I don't understand how she can even afford it.

[freddie*rooster]

Yes they could buy or pay off one of the asylum seeker tents those people who fall on hard times don't deserve to have a roof over their head. The elderly who didn't have access to super well that's just bad luck hey!

[purple_haize]

Here in a suburb of Melbourne, my stepdaughter just rented a 2 bedroom unit it is $380 per week.

[azureline**]

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@freddie*rooster wrote:

Yes they could buy or pay off one of the asylum seeker tents those people who fall on hard times don't deserve to have a roof over their head. The elderly who didn't have access to super well that's just bad luck hey!

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yes, maybe the asylum seekers will vacate them for those people.....

bad luck, been taken advantage of, illness, marriage breakdown, domestic violence, mental illness, disability.....any number of reasons some don't have a home.....

[cherry*135]

Super (SGC) was made compulsory in 1992.. starting off at 3%.  Someone who is 65 yo now, would only have paid into that for only 20 years of their working life and not all employer contributions at 9% as it is now.

A global financial crisis can take a big chunk out of the value of  a super fund if they hit around the time a person is due to retire.

Tony Abbott if elected intends to scrap the Super Govt co-contribution for low income earners.

He also intends to delay the rise of SGC from 9% to 9.25% (which Labor introduced on 1//7/2013) by 2 years if elected.

For a person who is now 30yo, that delay would mean approx $128 000 less in their super at retirement age.

[cherry*135]

2 br units/apartments - the rent can be just as high as a 3 brm house here. Once 2 brm places weren't  that popular (excluding major cities).

[daydream**believer]

they should downsize or move to an area with cheaper rent

[*elizabeths-mum*]

I wonder if granny flats or moving in with your children will become more common?

[i-need-a-martini]

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@daydream**believer wrote:

they should downsize or move to an area with cheaper rent

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Like...?

The point is that if they are on a pension then they are barely going to be able to afford rents in cheaper areas. The median asking rent in Blacktown is $360.

Even Dubbo (apparently the crime capital of the universe) has a median of $300pw.

So where do they go?