What are my housing options?

Renting a home is a way of life for 20-30% of Australians.

While the dominant political landscape focuses on the needs and aspirations of home owners, the needs of renters are often overlooked.

In Victoria 85,000 people over 55 years of age rent their accommodation.
60,000 of those are in private rental with 35,000 private renters surviving on the aged pension to pay for their accommodation and other living costs.

Possibly the single most important difference between renters and home owners is the occupier's sense of control of their circumstances.

Older home owners on pensions can have real difficulties where they find their dwelling needs increasing expenditure on maintenance and the yearly rates bill can be a burden, while renters choices and control over their circumstances are determined largely by outside forces.
For this reason many community groups support public housing because it is government regulated and controls can be put in place to determine rent levels and provide security of tenure.

In the private rental sector, market forces determine the availability, affordability and security of housing.

This means that there are wild fluctuations in conditions that tenants face depending on the economic climate and the relative availability of housing at any point in time.
For many years there has been an acute shortage of private rental housing at the lower priced end of the market as gentrification and speculation of property has directed rental housing towards younger upwardly mobile and 'cashed-up' renters.
This lack of supply of housing has forced rents up and increased the potential for landlords to manipulate tenancy agreements in their favour. Generally the legislation that covers private rental housing is tilted in favour of the landlord to allow them to manipulate the property as an investment vehicle.
Unlike younger people who see some advantages in renting in the private sector for the flexibility it provides for their often more transient lifestyles, many older tenants have no choice as waiting lists for public housing have blown out to the 15 year mark.
Access to public housing is generally by application on special grounds through the Segmented Waiting List. And if, like the majority of older renters, even those into their 80's, you are fit and able bodied, you have Buckley's chance of ever entering public housing.
Therefore many don't even bother applying.

The other main option available to older people on low incomes is Independent Living Units.

Across Melbourne there are over 300 clusters of housing developments operated by non-profit organisations.
There are many fine examples of well managed, secure and affordable housing operated by churches, community groups, and others such as the RSL and Abbeyfield.

However, the lack of regulatory controls for this type of housing can make the day to day life of an ILU resident something of a minefield.
Depending on the situation, the dwellings could be covered by the Residential Tenancies Act, the Rooming Houses Act, or the Retirement Villages Act. Some managers believe that, because of their benevolent approach, that tenants should simply be grateful for what is offered and not expect rights under any avenue of law!

In general however, independent living units and public housing are the main options for older people wanting to get out of the poverty trap of private rental housing and into something secure and manageable.
This often means a tenant has to find some alternative medium term option or find some way to manage paying high rents in the private rental market until their number on the list comes up.

Movable Units or 'granny flats' are another alternative whereby the Office of Housing can supply a unit for the backyard of a home occupied by a relative.
While living so close to kin doesn't suit everyone, if this is an attractive idea to you then the waiting time is about 3-6 months.

Finally, our advice is to plan ahead, investigate your future housing needs, and get onto those waiting lists now! If in doubt, call HAAG for help!

Ph: 96547389 (Melbourne metro.) 1800 637389 (Country callers)