High rates force Maribyrnong homeowners to leave

INNER west residents are fighting skyrocketing rate notices, saying they’re being forced out of homes they’ve owned for decades. But a leading demographer says there’s one tough decision they should be making instead.

Maribyrnong homeowners fear rapid rate rises could force them to sell up. Picture: iStock

ASSET rich but cash poor — that’s the dilemma many homeowners in the Maribyrnong region are facing due to skyrocketing property rates, says Australia’s leading demographer Bernard Salt.

Homeowners fear rapid rate rises, linked to rising property prices, will force them to sell up and walk away in droves.

Experts have suggested ratepayers who are living on mini goldmines should downsize, but many say their families have lived in the area for generations and shouldn’t have to move.

MARIBYRNONG HOMEOWNERS PAY HIGH RATES

HUNDREDS OF HOMEOWNERS CHALLENGE RATES NOTICE

MARIBYRNONG COUNCIL COMPLAINT CAPITAL

It comes as more than 50 ratepayers attended a Maribyrnong Council meeting last week protesting their high rates.

Residents told the meeting their rates were a “disgrace”, “criminal” and accused the council of “terrorising” its ratepayers.

Yvonne Collett is a fourth-generation Footscray homeowner, who has lived in her Paisley St home for 23 years.

But due to the council rezoning her property, her rates have doubled to $6000 this year, a sum which Ms Collett will not be able to afford to pay.

“I’m on Centrelink payments and I can’t pay that, it’s impossible,” she said.

“It would be terrible to move, my house is my home, not an investment.”

Footscray resident Yvonne Collett is angry about her rates. Picture: Hamish Blair

Mr Salt said many baby boomers were wealthy in assets, but did not have much cash in the bank.

Mr Salt said this could be the result of working for decades without the superannuation guarantee, as it only came into effect in 1992.

“Maribyrnong could be seen as the ‘canary in the coal mine’ — the leading indicator of social change in Australia — where you have an average-income Australian, who has worked hard, saved and built a house and created that as an asset — but hasn’t saved sufficiently for retirement,” he said.

“Not because they were wasteful, but because there was no scheme for them to do so.”

Mr Salt said homeowners struggling financially should consider selling up and downsizing.

Footscray homeowner Shell Thomas claimed the council “wrongly” valued her Raleigh St home at $300,000 higher than four independent valuers.

She is coughing up $4200 in rates this year, up $1200 due to rezoning.

Maribyrnong chief executive Stephen Wall said 20,000 properties had an increase in rates and 16,000 had a decrease in the 2017-18 financial year.

To date, 414 ratepayers have contested their valuation.

Mr Wall agreed the high rates may force some people out of their homes.

“It forces people to make a decision in regards to whether they are staying or leaving.”

Maribyrnong director corporate services Celia Haddock said payment plans and other options were available to residents who were finding it hard to pay their rates.

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