Squeeze on homes

Hamish Heard
Households in the Geelong region are under increasing stress as families struggle to find cash for mortgage and rental payments, according to latest Census figures.
The figures show the amount of households spending more than 30 per cent of their disposable incomes on mortgage or rental payments had jumped 125 per cent in the federal seat of Corangamite and 115 per cent in Corio since 2001.
The figures arrived at a bad time for the besieged Howard Government as it struggles to turn around opinion polls pointing to Labor leader Kevin Rudd as the next Prime Minister.
Nearly 25 per cent of householders in the Geelong region were spending more than 30 per cent of incomes on keep roofs over their heads when the 2006 Census was conducted.
Labor candidate for Corio Richard Marles said pressure on households struggling to meet weekly commitments was shaping as a key election issue.
“With eight interest rate rises in a row it’s hardly surprising we’re experiencing a mortgage and rental stress crisis,” Mr Marles said.
Household debt had skyrocketed under the Howard Government, he said.
“While there’s also the claim that interest rates are low compared to what they were in the past, the reality is households are more exposed to interest rates because their debt is higher.”
Mr Marles said a Labor proposal to encourage homebuyers to use their own funds stored in superannuation accounts as deposits for first homes would reduce household debt.
But Liberal Member for Corangamite Stewart McArthur said the Labor policy was rubbish.
“Raiding the super accounts of young middleincome earners doesn’t change the fundamental equation and any proposal to use super money for housing defeats the super objective, which is to prepare people for retirement,” Mr McArthur said.
Geelong region households were under less pressure than they were under the last Labor government, he said.
“The current low interest rate regime has assisted homeowners, unlike the 17 per cent interest rates that existed under Labor.
“Having low unemployment also means homeowners can find a job and can service their loan.”