Renters struggle as median cost hits $520/wk

Perth renters are struggling to pay the bills as median rental prices hit $520 a week.  Source: The Courier-Mail

LOW income earners in Perth are battling harder to find homes to rent, new research by Anglicare shows.

The median price of a rental property in Perth has jumped 16 per cent to $520 per week, up from $450 per week in 2012.

Anglicare's Rental Affordability Snapshot 2013, released today, shows only five per cent of Perth's rental market is affordable for people on the minimum wage.

Couples on the minimum wage with children can only afford 2.6 per cent of rental properties, down from 7.8 per cent last year.

The situation is even worse for people on benefits or pensions, who can access less than one per cent of the city's rentals.

For young people trying to move out of home, it's particularly tough, chief executive Ian Carter says.

``Whether they are studying, on a benefit or a minimum wage entry level job, the market is far beyond their price range,'' Mr Carter said.

``For some young people, this lack of affordable accommodation can lead to couch surfing and homelessness.''
Affordable rentals are already staggeringly low last year, but are even less accessible this year, Mr Carter says.

``This is a genuine crisis,'' he said.

``Many people are being forced to strike a terrible bargain and accept a rent price that is far above what they can afford.''

Mr Carter suggested raising unemployment benefits and rental assistance payments, and creating more public housing.

The Australian Greens suggested expanding the National Rental Affordability Scheme, as well as a convert-to-rent program to turn empty properties into affordable rentals.

``This program would see 15,000 rentals refurbished nationally for just $350 million,'' the party's housing spokesman Senator Scott Ludlam said.

``This is a modest investment that would make a difference to the shortfall of 500,000 affordable and available rental properties in Australia right now.''

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One in five Aussies struggle to find $1000

A total of 17 per cent of people would struggle to find $500 to $1000 to deal with an emergency. Picture: Luzio Grossi Source: news.com.au

ALMOST one in five Australians would struggle to come up with $1000 to deal with an emergency, while one in three people spend everything they earn.

A survey of almost 5000 Australians shows a deep divide exists between households that are financially prepared to cope with current and future expenses and those barely able to meet their everyday commitments.

It shows many Australians, including higher income earners, are unprepared for financial obstacles.

A total of 17 per cent of people surveyed would struggle to find $500 to $1000 to deal with an emergency, while 30 per cent were living from pay cheque to pay cheque.

More than 40 per cent of respondents said they were able to meet their monthly expenses, but a third admitted they were worried about their ability to do so.

Deanne Stewart, General Manager of BT, which financed the survey, says the results clearly show there are a large number of people struggling to cope financially day to day, and the problems are not always linked to the size of someone's pay packet.

"In many instances people are living in the hope that they will achieve their goals rather than planning for a fulfilling and secure future," Ms Stewart said.

"This has implications for their health and lifestyle, impacting on their levels of stress, and in the longer term influencing their enjoyment in the years after they finish work."

Surprisingly, 57 per cent of those surveyed had no regular savings plan.

This figure peaks among 45 to 54 year olds who are often nearing the height of their earning capacity.

It showed almost 40 per cent of people would not have enough savings to maintain their present lifestyle if they lost their income for three to six months.

A third of people worry about not being able to meet normal monthly living expenses and more than half can't save what they want to save.

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