Are rising interest rates affecting individuals and families? A recent survey has found that rising petrol prices and growing grocery costs are impacting on families far more than interests rates affecting household financing. This report found that the day-to-day living and costs are far more concerning to people than their home loans – with only 8.5% of borrowers saying that their levels of finance stress are caused by recent interest rate hikes. Do you agree?

In the Real Estate Institute’s most recent study, Queensland has been named the worst state for housing affordability – with residents using up more than 40% of their weekly income on loan repayments. This has knocked out New South Wales from the top spot which has been traditionally the most expensive state for servicing home loans. So now Brisbane has topped Sydney, Melbourne and Perth to become one of the lease affordable Australian capital cities for first-home buyers. The reason for this – Brisbane new homebuyers have been extending themselves further than those in other capital cities as the mortgage burden grows and is exacerbated by interest rate movements.

An emerging argument in response to the housing affordability crisis, is that we are ‘not building enough’. Housing construction has slowed as a result of high interest rates – which have worsened housing affordability. Research has shown that Australia is building around 30 to 40,000 less homes each year than we actually need. Without additional housing to address the shortage, housing affordability will continue to suffer. So perhaps more needs to be done by the government to focus on supply side solutions to housing affordability.

I was not surprised to read today that rents have risen more than 10 per cent across most Sydney council areas in the March quarter. I hear constant reports of people labouring under the vice like grip of their landlords.

Some vital statistics: Rents rose as high as 19 per cent in Canterbury for a two-bedroom flat, followed by 18 per cent in Hunters Hill and 17 per cent in Randwick and Marrickville.

This really hurts are hip pocket, reducing the amount of disposable income we have available for recreational pursuits and general living.

People are being forced to work second jobs, put expenses on their credit cards and scrimp and save on everything. 

This is no way to live!

We are seeing a spike in the numbers of people we are helping to sell down a portion of their property because of mortgage strain.

Here at PodProperty, we can help people suffering because of high interest rates by assisting people to sell down a portion of their property to their friends and family; specifically the partial sell down of the existing property, refinancing and co-ownership agreement. Remember that many hands make light work! 

The Reserve Bank warned yesterday it expects more people to fall behind on their mortgage repayments as the full impact of rate rises hits home.

"Looking forward, an increase in arrears is likely," it said in its twice-yearly review of financial stability."

Bearing a mortgage in today's climate of high interest rates is crippling. And how on earth are working families going to bear the next raft of interest rate rises which are almost certainly inevitable given the current level of inflation? 

According to a report released by the Real Estate Institute last week, the proportion of household income spent on an average home loan rose to a record high of 36.6 percent in the September quarter.

Such figures have not acted as a deterrent to borrowers, with the number of home-loan approvals in Australia continuing to rise. With interest rates continuing to grow and economic instability in financial markets, why aren’t borrowers being discouraged by these conditions?