Rent Rise

[Plentymech]

Our landlord owns ours and our good friends and next door neighbour’s houses along with shed loads of petrol stations and corporate property. Good for him.

We had a 10% increase last year ($1000-$1100 pw) and our neighbours got almost the same but they’ve just been told its going up another $50 pw. He’s tried to to the agent that he’s lived there with his family for 17 years (long story) and the house has had zero improvements in this time. They’ve put in A/C in this time at their expense and been really really good tenants.  Anyway, we’re told ours in also going to be increasing later in the year by at least $50 as well. That’ll be a 15% increase in two years. My wages have only increased less than 2% each year so are finding it harder and harder cover the rise. At some point there’s only so much you can cut back on. We can move of course but the standard of properties we’re seeing at the weekends is so depressing. It seems so rare a good one comes up that’ll take a dog also.

We’ve been here for 4 years now and just waiting for our citizenship ceremonies now and have been really happy in Sydney. Kids have settled well, we’ve been really lucky and made some very good friends who have helped massively in those dark days where nearly every immigrant finds the path hard going at times but for the first time we’re starting to think can we afford to live here. Moving away to an affordable suburb I know is the only answer but also feels like starting again as we have built up so much in the current community and I don’t think I can start again.

Sorry for the moan, I try not to be negative as a rule. Maybe I’m here just to see if anyone is or else has been in the same boat.

[Guest]

Sorry to hear re the rent increase. That is crappy. 

It can be difficult when first arriving and renting to rent in an area you won't be able to afford to buy in or possibly remain long term. I think that was one of the things I was painfully aware of when we moved over was it was all well and good being in an amazing area with the beach a few minutes walk away but the reality was, to buy a house to fit a family was going to be well above the price range we were able to consider. About $300-400,000 or more even. Renting would have been ok for a while but the not knowing re lease and all the downsides that come with it, we decided to cut our losses early and bought a house about 7 months in. It meant of course we moved areas (lovely area, pretty rural feeling but on edge of outer suburb) and schools. Only 20 minutes away in the car but it might as well be the other side of the city in terms of us spending lots of time visiting back where we moved from. We built our life in an area we could afford (buy and rent) and yes it meant we had to start over again with school and kids friendships for the most part but thats ok. A few months after moving in we felt we had nailed it and haven't looked back. I made a few friends in those early months I am still friends with and none of them live in the same area but we keep in touch and are good friends and catch up a fair bit. Moving out of an area doesn't mean you have to lose those friendships etc. 

I don't know the answer for you. I guess you'll have to see if you have any legal options re the rent increase or see if you can get on a few letting agents radar re a decent rental in the area. If you won't be able to afford to buy in the area then renting will probably be a struggle more as time goes on I'd have thought. How far away are you looking at to be able to afford to buy somewhere or rent something more affordable? 

I don't see anything wrong with moving elsewhere for the stability and peace (as in state of mind and stress/worry about landlord and rental) a home can give you, but that is only if you are open and happy to do so. If you are not, what are your options? Sydney, like London and other big popular cities is expensive to live in and many are priced out. I have friends who live in one of the most deprived areas of London, in a crappy 2 bed flat in one of those old concrete and pebbledash buildings who will never be able to afford to buy (or rent somewhere pricier) but who don't want to leave London. They stay there as its all they can afford but they are happy with their choice as they don't want to give up on the city and move a ways out. 

If you are indifferent to Australia (Sydney) and its only really held together for you because of the friendships and the area, thats very tricky ground to negotiate and move forward from. There needs to be more to life than those things but I also realise those things are often the glue that helps things stick and work that bit better. Guess it comes down to how you all may cope and manage with change and the possible challenges ahead should you move. 

 

[dxboz]

I think you have got to bite the bullet on this one and move to a cheaper suburb or state! That is a huge amount of rent to be paying. Making the move to another suburb or state is so much easier than the big move you did to come to Australia. Although I do know that once you have made such a big move to come here sometimes you feel stuck because you made such a big move and it feels so hard to move on. You have to be brave and decide what is right for you but staying where you are does not look like a good option. You don't sound really settled here - maybe a move back to where you came from once you have got citizenship might also be on the cards? I think the rent increases are legal - check your contract. Most would allow for an increase every year. Also looking to the future you don't want to be renting forever. Good luck with your decision.

[Eera]

You can appeal against excessive rent increases.  This link tells you how:
http://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Renting_a_home/During_a_tenancy/Rent_increases.page

Effectively are you paying fair rent compared to the rest of the houses locally?  Try negotiating with the landlord (via the agent if that's who they go through).  Sometimes it's not in the landlord's interest to lose a tenant as generally the time the place is vacant plus the advertising costs is greater than the amount that the rent would have brought in.