Louise Wilksch had been paying $900 a month for her Brunswick East bungalow for 25 years, but now, the 71-year-old Melbourne woman has become the voice of Australia’s brutal rental crisis and has found herself without a home.

Louise had been living in the same address for a quarter of a century, receiving disability pension, until the start of this month when she was hit with an eviction letter.

Brunswick East, Melbourne. Image source: Shutterstock.

'It’s sent me into shock. I couldn’t eat for a few days, and then I got a really bad cold. I think from the stress,' she told The Guardian of the devastating news.

Priya Stern, a 19-year-old Visual Arts student at the University of Melbourne, was so moved by Ms Wilksch’s plight she has started a GoFundMe to help raise cash to support her, despite the two women never having crossed paths. She wanted to highlight the fact that older Australians were often particularly vulnerable when it comes to sky-high rents.

'I don’t know Louise personally, but when I read her story, I just felt so sad for her,' Priya said.

'A lot of my friends are really struggling, and some of my country friends who are trying to go to uni can’t move to the city, so they are travelling an hour and a half each way – it’s very hard.'

‘It is definitely affecting everyone, including a lot of elderly people – things are really bad.’

‘Louise can’t find anywhere else in the same area because it’s so expensive, even though she works there and all her friends are there, and it’s really hard to move, especially when you’re a bit older.’

As we all know, Aussies of all ages are struggling at the moment. According to GoFundMe Regional Director Nicola Britton, the rising cost of living is leaving the most vulnerable in the country with little choice but to choose between their home or pay for everyday essentials.

In fact, there has been a staggering 263 per cent increase in the number of GoFundMe fundraisers that mention “cost of living” and “rising cost of living” in the last 12 months, compared with the 12 months prior.

'The past two years, we have seen Australians grapple with the country’s rental crisis, launching fundraisers for temporary accommodation. Now, as the housing crisis continues, the rising cost of living is leaving these same people forced to choose between their home or pay for everyday essentials,' Nicola said.

She went on, ‘While I am glad we can provide a platform for Australians to give and get help, community support can only extend so far.’

And the problem doesn’t look like it’s going away anytime soon, either. PropTrack’s August Market Insight report showed rental vacancy rates had dropped to 1.43 per cent in July, with a shortage of available rental properties driving up prices in both major cities and regional areas.

Key Takeaways

• A 71-year-old Melbourne woman has become the voice of Australia’s brutal rental crisis after receiving an eviction notice from the home where she lived for 25 years.
• Louise Wilksch, who receives a disability pension, has just two weeks left to find a new home, causing her significant distress.
• A 19-year-old University of Melbourne student, Priya Stern, was so moved by Ms Wilksch's story that she started a GoFundMe campaign to support her.
• There has been a staggering 263 per cent increase in GoFundMe fundraisers that mention 'cost of living' and 'rising cost of living' in the last 12 months, highlighting the severity of Australia's current housing crisis.

Members, it’s stories like Ms Wilksch’s that serve as a stark reminder for us all to stay informed when it comes to the rental crisis in Australia. Longtime landlords no longer feel guaranteed security, and tenants no longer have the peace of mind they once had. If you or someone you know is struggling to pay rent, you can contact Services Australia’s Rent Assistance here for information on how to get help.

What are your thoughts on this story, members? Tell us what you think in the comments below.

 

[Rob44]

Not all landlords live on the top end of town, nor are all landlords greedy. A lot of them are just battlers, trying to get along like everyone else.A lot of them bought rentals when interest rates were low, not thinking what they could afford when interests went up again.
Obviously also a lot of them not having any experience in owning a rental did not give much thought to the expenses to that come along with this type of investment. Not having funds behind them for things such as needing a new oven, hot water system, etc etc. Now interest rates have skyrocketed the only thing they can do is raise the rent or sell up.

As we have seen in recent years, home rental in this country is at crisis point. Rents are rising and there is a shortage of rental properties. While politicians attempt to look sympathetic and tell the public they are working to help fix this dire situation, they continue to make the problem worse by reaping money from taxing rental property owners.

Corporations, many of them located overseas, own bulk properties. Many properties are owned by individuals and families who may have one property or a few. The tax burden placed on property owners is particularly hard on the individuals and families who are finding that the cost of holding investment properties is no longer viable, even with the limited benefits of “negative gearing.” The following is a list of the financial strains on property holders that explain to some extent why rents are rising and rental properties are becoming hard to find.

Stamp duty: A huge tax calculated on the cost of the property and imposed by the federal government on home buyers. As property values have increased, this tax has become exorbitant. As a rough estimate, the average buyer would need to plan for at least year’s salary just to pay this tax.

Land tax: A State tax imposed where a person lives in one home and has another in the same State. If the estimated land value of the second property exceeds a specified amount, a tax of thousands of dollars is imposed annually.

Interest rates on mortgages: While banks impose the charge, it is the government’s policy on interest rates that drives the rising cost. High mortgage rates are contributing to property investors either selling to escape rising costs or raising rents to cover the mortgage rate increases.

Capital Gains Tax: This tax amounts to 15% of the profit made on the property at sale, no matter how long it was held. This tax is likely to take the equivalent of all the rent (which was already taxed) earnt from that property across the time it was owned by the investor.

Council charges: Rates (higher for investment properties). Water supply service. Annual smoke detector inspections (about $1,000 per year). Councils can demand the owner makes repairs to their property where it is adjacent to council property.

Other: Landlord’s insurance, managing agent’s fees, termite barriers, repairs to plumbing and general maintenance.

With all of these costs rising at unprecedented rates, it is not surprising that rental properties have become a less desirable investment leading to decreased availability and higher rental costs. If people cannot rent and cannot buy, what can they do? If the government does not want to increase public housing, then a positive move would be to stop taxing individual property investors out of the rental market and put a brake on the interest rates that are causing cost hikes in every area of life.

 

[Rob44]

As we have seen in recent years, home rental in this country is at crisis point. Rents are rising and there is a shortage of rental properties. While politicians attempt to look sympathetic and tell the public they are working to help fix this dire situation, they continue to make the problem worse by reaping money from taxing rental property owners.

Corporations, many of them located overseas, own bulk properties. Many properties are owned by individuals and families who may have one property or a few. The tax burden placed on property owners is particularly hard on the individuals and families who are finding that the cost of holding investment properties is no longer viable, even with the limited benefits of “negative gearing.” The following is a list of the financial strains on property holders that explain to some extent why rents are rising and rental properties are becoming hard to find.

Stamp duty: A huge tax calculated on the cost of the property and imposed by the federal government on home buyers. As property values have increased, this tax has become exorbitant. As a rough estimate, the average buyer would need to plan for at least year’s salary just to pay this tax.

Land tax: A State tax imposed where a person lives in one home and has another in the same State. If the estimated land value of the second property exceeds a specified amount, a tax of thousands of dollars is imposed annually.

Interest rates on mortgages: While banks impose the charge, it is the government’s policy on interest rates that drives the rising cost. High mortgage rates are contributing to property investors either selling to escape rising costs or raising rents to cover the mortgage rate increases.

Capital Gains Tax: This tax amounts to 15% of the profit made on the property at sale, no matter how long it was held. This tax is likely to take the equivalent of all the rent (which was already taxed) earnt from that property across the time it was owned by the investor.

Council charges: Rates (higher for investment properties). Water supply service. Annual smoke detector inspections (about $1,000 per year). Councils can demand the owner makes repairs to their property where it is adjacent to council property.

Other: Landlord’s insurance, managing agent’s fees, termite barriers, repairs to plumbing and general maintenance.

With all of these costs rising at unprecedented rates, it is not surprising that rental properties have become a less desirable investment leading to decreased availability and higher rental costs. If people cannot rent and cannot buy, what can they do? If the government does not want to increase public housing, then a positive move would be to stop taxing individual property investors out of the rental market and put a brake on the interest rates that are causing cost hikes in every area of life.

As we have seen in recent years, home rental in this country is at crisis point. Rents are rising and there is a shortage of rental properties. While politicians attempt to look sympathetic and tell the public they are working to help fix this dire situation, they continue to make the problem worse by reaping money from taxing rental property owners.

Corporations, many of them located overseas, own bulk properties. Many properties are owned by individuals and families who may have one property or a few. The tax burden placed on property owners is particularly hard on the individuals and families who are finding that the cost of holding investment properties is no longer viable, even with the limited benefits of “negative gearing.” The following is a list of the financial strains on property holders that explain to some extent why rents are rising and rental properties are becoming hard to find.

Stamp duty: A huge tax calculated on the cost of the property and imposed by the federal government on home buyers. As property values have increased, this tax has become exorbitant. As a rough estimate, the average buyer would need to plan for at least year’s salary just to pay this tax.

Land tax: A State tax imposed where a person lives in one home and has another in the same State. If the estimated land value of the second property exceeds a specified amount, a tax of thousands of dollars is imposed annually.

Interest rates on mortgages: While banks impose the charge, it is the government’s policy on interest rates that drives the rising cost. High mortgage rates are contributing to property investors either selling to escape rising costs or raising rents to cover the mortgage rate increases.

Capital Gains Tax: This tax amounts to 15% of the profit made on the property at sale, no matter how long it was held. This tax is likely to take the equivalent of all the rent (which was already taxed) earnt from that property across the time it was owned by the investor.

Council charges: Rates (higher for investment properties). Water supply service. Annual smoke detector inspections (about $1,000 per year). Councils can demand the owner makes repairs to their property where it is adjacent to council property.

Other: Landlord’s insurance, managing agent’s fees, termite barriers, repairs to plumbing and general maintenance.

With all of these costs rising at unprecedented rates, it is not surprising that rental properties have become a less desirable investment leading to decreased availability and higher rental costs. If people cannot rent and cannot buy, what can they do? If the government does not want to increase public housing, then a positive move would be to stop taxing individual property investors out of the rental market and put a brake on the interest rates that are causing cost hikes in every area of life.

The British government of 1945-1950 organised the building of 1.2 MILLION "Council Houses" (public housing)when the country was nigh-on bankrupt from fighting WW2. Australia? With the wealth that is in the ground in this country and is being extracted now (copper, gold, iron ore, bauxite, gas, coal, oil etc.) + farm and forestry produce and fish etc...............We need 1.2 million "council houses" in the next couple of years, but this is AUSTRALIA , the callous country, and we are standing in it. We might have to increase the top-rate income tax from 33% to that acceptable to Maggie Thtacher in 1979, 60%. But just listen to the screams of the wealthy if that were to happen.

 

[Jan A]

Hot water systems are not covered by insurance just because they get old and stop working. However, if they spring and leak and the water from that leak causes damage, then the insurance covers the damage (less the excess payment).

 

[Rob44]

Hot water system etc aren’t they covered by insurance?

Fair wear and tear , sir. Just like the water that tenants leave lying in the bathroom that eventually gets below the vinyl/tiles and that stays there over time rotting the floor-boards requiring major work. Fair wear and tear, sir. Nor is that covered by the bond, which is totally inadequate for repairing such types of damage.

Even if one keeps the rent down as the tenant hasn't got a high income and one feels sympathy for that tenant.

 

[Littleboy8]

Hot water systems are not covered by insurance just because they get old and stop working. However, if they spring and leak and the water from that leak causes damage, then the insurance covers the damage (less the excess payment).

Do they actually have systems inside mine have always been outside?

 

[Rob44]

"Louise can’t find anywhere else in the same area because it’s so expensive, even though she works there and all her friends are there, and it’s really hard to move, especially when you’re a bit older."
I think she's a rare one on a disability pension that still works at 71.
She's been living a good life in inner Melbourne - no doubt going to all the nice cafes.

What a presumptious bastard of a thing to even think.

 

[Littleboy8]

What a presumptious bastard of a thing to even think.

Totally agree there abit rude me thinks

 

[Leenie]

Do they actually have systems inside mine have always been outside?

Mine is inside the laundry.

 

[Littleboy8]

Mine is inside the laundry.

Really guess it won’t get weathered there

 

[Leenie]

Really guess it won’t get weathered there

Yep never had a problem,