Renters could be hit hard by interest rate rises over the next two years, industry experts have said.
Further
interest rate rises over the next two years could negatively affect renters in terms of mortgage payments being passed on to tenants, according to industry experts.
Both real estate chain Ray White and property analyst Residex believe that the Reserve Bank of Australia (RBA) could be doing some damage to the rental market by upping the cash rate, News Limited Newspapers reports.
Ben White, a director at Ray White, said everyone will be increasing their leasing charges.
He added: "The mortgages of rental property owners are becoming more expensive, so it's inevitable that this will result in rents going up."
The RBA increased the official cash rate by 0.25 per cent at the beginning of the month to 4.25 per cent.
And this led to a selection of banks hiking up their interest rates, such as ANZ – which offers a range of
ANZ savings accounts – raising its rates on
credit cards by 0.25 per cent.
By Mark Hornby
