Housing Crisis in Australia

[Aliantha]

Although we live in a wonderful country, it's getting harder and harder for some families to live in this wonderful country. With record numbers of people suffering what is referred to as 'mortgage stress' - meaning that people are finding it hard to pay their mortgage and other bills whilst maintaining the same lifestyle - the Rudd government has come up with a plan to tackle the problem.

In an article in the Courier Mail today, the plan is outlined:

Investors will be offered $6000 tax breaks for 10 years - not the five promised before the election - if they rent out their new properties at 20 per cent below the market rate.

The aim is to cut rent on a new average three bedroom unit to $280 a week from the current $350 - a $70 saving.

This is good news for those who might be looking at renting down the track, but what about those people now who can't afford the rent or mortgage? Our inflation continues to climb, pushing interest rates up and up to the point where after today, it's likely that most people will be paying more than 9% interest on their mortgage.

I don't think we'll be needing Mr Rudds new plan. I think a lot of people are going to be forced to sell their homes and live somewhere more affordable.