The Family

The Age

Thursday November 8, 2007

Leo Shanahan

REBECCA Veitch will give birth "any time now" to her second child. The 37-year-old ambulance paramedic, who is married to a police rescue officer, is relaxed about going into labour - but managing yesterday's rate rise may test the couple's crisis management skills.

The Veitches have a four-bedroom house in Wantirna South. They also have a two-bedroom house in the same suburb that, like a million other Australians, they negatively gear. Their first house was repaid when they decided to take out a second mortgage to pay for their dream home.

They now owe a total of about $390,000.

"We probably pay 30 per cent of our income towards our mortgage payments," she says.

They've been living in their dream house for only four months - the move was delayed when her husband, Ian, contracted non-Hodgkin's lymphoma cancer.

Mrs Veitch says that when the two were well and both working they didn't notice the previous rate rises, but the last few have been different, adding about $60 a month per rise to their payments. "Now we're down to one income and higher mortgages."

Their situation will be further complicated. They'll be left with an income of about $70,000 for the next year when Mrs Veitch goes on unpaid leave. Combine this with the cost of daughter Sofie going to kindergarten next year and raising a baby.

"An interest rate rise will curb our spending," she says. "If things really get grim we may have to sell the small house to cover our debts."

But she doesn't blame the Government. "I think it's independent of who's in government." -- LEO SHANAHAN

© 2007 The Age

Back to News Index | Back to Home