Rapidly rising interest rates have seen Aussie property investors forced to fork out tens of billions of dollars in extra mortgage repayments, new analysis has revealed.
Property Investment Professionals of Australia (PIPA) calculations show the characterisation of landlords as greedy by some politicians are way off the mark.
Based on figures and assuming averages, property investors are potentially paying a staggering $44 billion more in mortgage repayments due to interest rates increasing by four percentage points since May last year.
PIPA Chair Nicola McDougall explained.
“The severe impact of skyrocketing interest rates on property investors – the majority of whom are mum-and-dad investors with just a single rental property – is being ignored by political parties with vested interests,”
Nicola McDougall - PIPA Chair
The stark analysis comes amid the latest attack of landlords by the Greens, which last week claimed a national rent freeze could have “saved” tenants $3 billion.
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“There’s no doubt many renters are doing it tough because of higher rent prices, but the cause of those hikes is incredibly high demand from tenants and a historically low supply of available dwellings,” Ms McDougall said.
“If the Greens want to talk about costs, we invite them to recognise the incredible hit mum-and-dad investors have taken – a figure that dwarfs the number they’ve come up with.”
The Greens have demanded a national freeze on rent prices for 12 months, blocking the Federal Government’s desperately needed $10 billion Housing Australia Future Fund until it gets its way.
Ms McDougall further explained...
“While most parties are trying to constructively find real solutions to the rental crisis, the Greens are once again seeking the spotlight with their absurd and unrealistic demands for a rent freeze.
It’s petty politics that achieves nothing while people are struggling.What the rental market needs is a dramatic increase in supply.
Building new homes takes a long time – the most efficient way to quickly boost the number of available rentals is to encourage private investors to buy.”