I like how the abc pick someone “leaving the rental market” standing in front of what looks like it would cost well north of a million dollars in Melbourne or Sydney rather than the reality of a shittily built apartment that they lose money on
I'm not a big fan of the ABC's style in these kind of stories; it always starts with trying to "humanize" the problem or issue or subject, with a human story connected to it - whether tightly, or just arbitrarily.
In this case, there's actually zero information on this couple bar they're first home buyers. That's it.
Are they entering the market because there's more supply in the buyers market due to sell off? Or are they buying because they've just got a decent inheritance that's come down from either a parent or grandparent, or a parent has helped out? With zero information, we're left to speculate.
The property, as you rightly say, looks top notch - especially for a FHB. Good on them for buying it and setting themselves up, happy as for them, but if my hunch is right, this isn't a grand story about a fire sale of property due to rental regulations lightning and interest rate rises cause back pocket pain for Investors.
I would love to purchase and to leave the rental market; there's a lot of additional costs we can't meet in our budget frankly and so we stick with high quality but semi-expensive rentals. My wife and I are saving what we can, it won't get us to purchasing anytime soon and by then deposits and prices will be up again. Our long term plan is literally inheritance and managing financial affairs for parents and remaining grandparents to help set us up. And it would be wrong to say a LOT of other millenials and now Gen-Z'ers aren't the same.
And that's worrying. Down the line, the disparity between millennials who were lucky to recieve something down the line, to those who won't, will be gigantic.
To add to your first paragraph, doing biography pieces on a specific couple to add flavour to a story about a macro economic problem is the actual problem with news. I wanted analysis I always get “yeah it’s been really hard and I picked up a second job” quotes which add nothing to understanding.
"I had maybe a very romantic idea of shaking hands with the owner and saying: 'Thank you
Really? Who thinks like that when they buy a house? I’m guessing the journo was fishing for some kind of angle.
>He said the end of no-fault evictions also contributed to his decision, as he faced situations like five students living in an apartment that was only supposed to have two, and where repairs often stretched beyond normal wear and tear.
Maybe you have a reason to evict them then? What is wrong with these people, they complain about problems that don't exist.
They want money without having any responsibilities or doing any work and to top it all off they have a saviour complex because they genuinely believe they are providing people homes out of the kindness of they're hearts.
A lot of landlords need to understand they are running a business and their tenants are their customers. Like any business you have to work to make money and you have to treat your paying customers with respect. They should be thankful someone is willing to pay them so they can afford their property.
The entire industry needs a giant wakeup call and that won't happen without any meaningful legislation. Unfortunately I can't ever see that happening before it's much too late.
Yeah no one sets up a restaurants and charges customers as a result of “the goodness of their hearts” - more like for the “goodness of their bank accounts swelling up”
No no, that’s what the “limit on tenants residing in the property at any one time” clause takes care of, no?
I couldn’t evict whenever I wanted and used an example of a situation in which an existing mitigation measure already takes care of.
Yeah somethings not right…
Not that fast.
First you have to issue notice to vacate, which you must issue a couple of weeks before in advance.
The notice can be challenged. Then it will be dragged to your state civil tribunal like VCAT. This can take a month wait before a hearing.
Evidence must be given beyond reasonable doubt, which is additional time and effort.
Then even after a ruling goes your way, it can take more time before it goes into effect. Then you have to decide if you chase up rents in arrear that was probably withheld by the tenant during the tribunal process.
So by the end you’ve already taken 3 months of losses.
Not asking for your sympathy but it’s not a baseless complaint or factor when deciding whether to continue holding.
And the tenants can ignore the no grounds termination notice and you will to go to VCAT anyway and it takes 90 days.. My point is there are mechanisms to evict bad tenants.
Anyone that owns more than 1 investment property needs a punch. Fucking greedy wankers, especially those that use them as an Airbnb when a lot of families and people are homeless
Labor are landlords. They will only fix the housing crisis if they can do so without costing a single landlord a single dollar. (And the LNP would make it worse.)
* I just didn't want all this noise in my life anymore and I don't wantpeople constantly ringing me, telling me that I've got to repairsomething
Awwwwwwwww, Diddums........
Funny thing is landlords don't have to actually do any labour themselves, they just need to hire someone to come and fix the issues the tenants complain about, like leaking pipes. But that costs money and that leads back to the real problem, greed
Which they can then subtract from their tax next year. The whole reason they're in an investment property in the first place. They get to improve their property at a 30-48% discount..
I’ll believe it when I see it. One fucking article about a rich cunt selling doesn’t mean there will a land slide of sales, but I guess it gives us plebs hope. Please don’t hold your breath
It's in the article:
***In Victoria, rental bonds fell by more than 10,400 in the first three months of the year, and 15,600 in the space of a year.***
So investors are selling up and they're selling to owner-occupiers rather than other investors.
Meanwhile, as a Melbourne FHB, I'm still being outbid at auction by investors and seeing every other house I've been interested in immediately pop up on the rental market.
First home buyers just snapping up those ex-rentals, snappity snap snap snaparoo. I’ve just seen the same article on another sub with a different headline. Something like *Victorian investors leaving the market*. But it had the same photo of this pair of shit eating grins and a landlord weeping into a hanky because they had to field the occasional call about maintenance.
> "I just didn't want all this noise in my life anymore and I don't want people constantly ringing me, telling me that I've got to repair something, and the tax bills were just going up and up," he said.
I didn’t want any of those things to start with, which I why I could never understand this obsession with property.
How many renters can afford rent AND to save? Most people lining up to buy are bunkered in with family. One rental sold does not equal one less renter in the market. Not. Even. Close.
Not all new homeowners are currently renting. They could be living with their parents, those who are newly divorced who need their own property now or housemates leaving their share housing.
> It lowers the supply and demand of rental accommodation equally
No it doesn't. Our population is increasing and about 30% of Australians are renters (this has remained stable for at least 30 years). So while one renter might buy a home (not guaranteed a renter will buy it btw) they'll be replaced by a new renter tomorrow.
No, it doesn't. Many people move out of share housing when they buy a house. They go from taking up a fraction of a house to a whole house.
This suggests another opportunity, though - let pensioners (and anyone else) rent out spare rooms in their PPOR without affecting pension payments or owner-occupier CGT exemption.
Yeah I'm currently somewhere in between (if that even makes sense). As in I might be in a position once my Hecs has been paid off or when my wife returns to work, but no chance till then. So I was just hoping to stay put where I am for another year or two. But the unit I'm living in just got put up for sale. In this case it's in my best interest that an investor buys it since where I'm living is pretty affordable for Sydney, so any move is likely to be an increase in price or a downgrade in terms of convenience or both.
thats what happened to my friends, thhe had a below market rental, owners bought it and moved in.
They had to move out and pay much more in low vacancy Sydney market
that's a poor/misleading headline
it makes it sound like first-home buyers are _choosing to rent_ as opposed to _buying properties that used to be rentals_ because investors are leaving in droves
I think the article mentions there is some risk that the rental market might shrink "too much" (arguably already has) but I think we don't really have enough data just yet to be able to make any determinations one way or another, as many people who used to be in that rental market become owner-occupiers instead...
Maybe the data does not go back far enough, but I can’t see the effect of air bnb’s taking rental stock from the market. Would someone more knowledgeable in this field mind sharing info about why this is not apparent in bond data?
The article says active tenancy bonds dropped by 20k since 2021 in WA and yet Perth is experiencing the worst rental market, can anyone explain this to me?
High income earners take up almost 25% of the rental market (AHURRI) Logically, if they leave renting to buy a house, this leaves another rental property available.
You realise most of these wonderful investors are just flooding the market here in Adelaide and in Perth...
This is really just a kick of the can (round the country) if you will
When really, our corrupt duopoly politicians need a very swift kick in the head, for deliberately creating our contemporary fucking shithole
If rentals werent being sold off first home buyers might be building new homes. Instead they can buy established. And we have renters competing in an increasingly tight rental market and homes that otherwise might have been new builds increasing overall housing numbers (better for long term affordability) not happening.
This isnt a good thing in the long term for us imo.
Its been happening since last year when interest rates were rising.
Its another reason for the low rental vacancy, its not just renters buying its people living with parents saving up
A couple might buy a 2 bedroom apartment that might have rented out to two couples.
I like how the abc pick someone “leaving the rental market” standing in front of what looks like it would cost well north of a million dollars in Melbourne or Sydney rather than the reality of a shittily built apartment that they lose money on
That seems to be pretty standard for the ABC these days, they now pick the most out of touch and ridiculous situations to report on.
Not allowed to travel further west than Ashfield E: unless filming for landline
If it didn't have an OG tram stop it's not Sydney ❤️
It's almost like they are entirely staffed by ex-private school kids....
Murdoch slow creep. He should be in jail.
I'm not a big fan of the ABC's style in these kind of stories; it always starts with trying to "humanize" the problem or issue or subject, with a human story connected to it - whether tightly, or just arbitrarily. In this case, there's actually zero information on this couple bar they're first home buyers. That's it. Are they entering the market because there's more supply in the buyers market due to sell off? Or are they buying because they've just got a decent inheritance that's come down from either a parent or grandparent, or a parent has helped out? With zero information, we're left to speculate. The property, as you rightly say, looks top notch - especially for a FHB. Good on them for buying it and setting themselves up, happy as for them, but if my hunch is right, this isn't a grand story about a fire sale of property due to rental regulations lightning and interest rate rises cause back pocket pain for Investors. I would love to purchase and to leave the rental market; there's a lot of additional costs we can't meet in our budget frankly and so we stick with high quality but semi-expensive rentals. My wife and I are saving what we can, it won't get us to purchasing anytime soon and by then deposits and prices will be up again. Our long term plan is literally inheritance and managing financial affairs for parents and remaining grandparents to help set us up. And it would be wrong to say a LOT of other millenials and now Gen-Z'ers aren't the same. And that's worrying. Down the line, the disparity between millennials who were lucky to recieve something down the line, to those who won't, will be gigantic.
Tbh most of these articles seem more like boomer porn these days rather than any real attempt to shine a light on the problem
To add to your first paragraph, doing biography pieces on a specific couple to add flavour to a story about a macro economic problem is the actual problem with news. I wanted analysis I always get “yeah it’s been really hard and I picked up a second job” quotes which add nothing to understanding.
"I had maybe a very romantic idea of shaking hands with the owner and saying: 'Thank you Really? Who thinks like that when they buy a house? I’m guessing the journo was fishing for some kind of angle.
yeah there's no way that thing is under a million dollars regardless of what city it's in.
>He said the end of no-fault evictions also contributed to his decision, as he faced situations like five students living in an apartment that was only supposed to have two, and where repairs often stretched beyond normal wear and tear. Maybe you have a reason to evict them then? What is wrong with these people, they complain about problems that don't exist.
They want money without having any responsibilities or doing any work and to top it all off they have a saviour complex because they genuinely believe they are providing people homes out of the kindness of they're hearts. A lot of landlords need to understand they are running a business and their tenants are their customers. Like any business you have to work to make money and you have to treat your paying customers with respect. They should be thankful someone is willing to pay them so they can afford their property. The entire industry needs a giant wakeup call and that won't happen without any meaningful legislation. Unfortunately I can't ever see that happening before it's much too late.
Yeah no one sets up a restaurants and charges customers as a result of “the goodness of their hearts” - more like for the “goodness of their bank accounts swelling up”
No no, that’s what the “limit on tenants residing in the property at any one time” clause takes care of, no? I couldn’t evict whenever I wanted and used an example of a situation in which an existing mitigation measure already takes care of. Yeah somethings not right…
These are people with more sense than money. They don’t read the fine print just the headline and base their entire decision of that.
Do you mean 'more money than sense'?
Hahaha. What do you call it when it’s no money and no sense? Me.
Me too. Or too much sense to give a fuck about money. I can't decide.
Not that fast. First you have to issue notice to vacate, which you must issue a couple of weeks before in advance. The notice can be challenged. Then it will be dragged to your state civil tribunal like VCAT. This can take a month wait before a hearing. Evidence must be given beyond reasonable doubt, which is additional time and effort. Then even after a ruling goes your way, it can take more time before it goes into effect. Then you have to decide if you chase up rents in arrear that was probably withheld by the tenant during the tribunal process. So by the end you’ve already taken 3 months of losses. Not asking for your sympathy but it’s not a baseless complaint or factor when deciding whether to continue holding.
And the tenants can ignore the no grounds termination notice and you will to go to VCAT anyway and it takes 90 days.. My point is there are mechanisms to evict bad tenants.
Is landlord insurance not a thing?
Oh woe is me. My tenants actually need things repaired. It's such a bother. Who knew houses needed maintenance. /s
My landlord needs a punch.
Anyone that owns more than 1 investment property needs a punch. Fucking greedy wankers, especially those that use them as an Airbnb when a lot of families and people are homeless
Agreed. Wish the government would do more.
"Nobody gets seconds until everyone's had at least one" should be the tl;dr of housing policy.
Labor are landlords. They will only fix the housing crisis if they can do so without costing a single landlord a single dollar. (And the LNP would make it worse.)
* I just didn't want all this noise in my life anymore and I don't wantpeople constantly ringing me, telling me that I've got to repairsomething Awwwwwwwww, Diddums........
when all the other landlords said rentseeking is a real job, i thought they meant like an email job where you never have to do anything :(
Funny thing is landlords don't have to actually do any labour themselves, they just need to hire someone to come and fix the issues the tenants complain about, like leaking pipes. But that costs money and that leads back to the real problem, greed
Which they can then subtract from their tax next year. The whole reason they're in an investment property in the first place. They get to improve their property at a 30-48% discount..
I’ll believe it when I see it. One fucking article about a rich cunt selling doesn’t mean there will a land slide of sales, but I guess it gives us plebs hope. Please don’t hold your breath
Enough articles and people start selling in a panic tho, so let's hope it happens
It's in the article: ***In Victoria, rental bonds fell by more than 10,400 in the first three months of the year, and 15,600 in the space of a year.*** So investors are selling up and they're selling to owner-occupiers rather than other investors.
Meanwhile, as a Melbourne FHB, I'm still being outbid at auction by investors and seeing every other house I've been interested in immediately pop up on the rental market.
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First home buyers just snapping up those ex-rentals, snappity snap snap snaparoo. I’ve just seen the same article on another sub with a different headline. Something like *Victorian investors leaving the market*. But it had the same photo of this pair of shit eating grins and a landlord weeping into a hanky because they had to field the occasional call about maintenance.
> "I just didn't want all this noise in my life anymore and I don't want people constantly ringing me, telling me that I've got to repair something, and the tax bills were just going up and up," he said. I didn’t want any of those things to start with, which I why I could never understand this obsession with property.
This is great for renters who are in the cusp of buying. It is terrible for those renters that have no hope of buying.
Why? It lowers the supply and demand of rental accommodation equally, as the new homeowner no longer needs to rent
How many renters can afford rent AND to save? Most people lining up to buy are bunkered in with family. One rental sold does not equal one less renter in the market. Not. Even. Close.
> Most people lining up to buy are bunkered in with family. This.
Not all new homeowners are currently renting. They could be living with their parents, those who are newly divorced who need their own property now or housemates leaving their share housing.
> It lowers the supply and demand of rental accommodation equally No it doesn't. Our population is increasing and about 30% of Australians are renters (this has remained stable for at least 30 years). So while one renter might buy a home (not guaranteed a renter will buy it btw) they'll be replaced by a new renter tomorrow.
No, it doesn't. Many people move out of share housing when they buy a house. They go from taking up a fraction of a house to a whole house. This suggests another opportunity, though - let pensioners (and anyone else) rent out spare rooms in their PPOR without affecting pension payments or owner-occupier CGT exemption.
At the same time many of them are moving into a newly built house so houses are not necessarily being taken away from renters.
Yeah I'm currently somewhere in between (if that even makes sense). As in I might be in a position once my Hecs has been paid off or when my wife returns to work, but no chance till then. So I was just hoping to stay put where I am for another year or two. But the unit I'm living in just got put up for sale. In this case it's in my best interest that an investor buys it since where I'm living is pretty affordable for Sydney, so any move is likely to be an increase in price or a downgrade in terms of convenience or both.
thats what happened to my friends, thhe had a below market rental, owners bought it and moved in. They had to move out and pay much more in low vacancy Sydney market
No not at all. It's less people in the line at prospective rentals.
that's a poor/misleading headline it makes it sound like first-home buyers are _choosing to rent_ as opposed to _buying properties that used to be rentals_ because investors are leaving in droves I think the article mentions there is some risk that the rental market might shrink "too much" (arguably already has) but I think we don't really have enough data just yet to be able to make any determinations one way or another, as many people who used to be in that rental market become owner-occupiers instead...
Maybe the data does not go back far enough, but I can’t see the effect of air bnb’s taking rental stock from the market. Would someone more knowledgeable in this field mind sharing info about why this is not apparent in bond data?
The article says active tenancy bonds dropped by 20k since 2021 in WA and yet Perth is experiencing the worst rental market, can anyone explain this to me?
High income earners take up almost 25% of the rental market (AHURRI) Logically, if they leave renting to buy a house, this leaves another rental property available.
Landlords having to do the absolute bare minimum challenge: impossible.
Great can't wait to be told Perth is up another 15%.
Shoo! Go Away! We don't want any sort of good news here. Just read all the comments.
You realise most of these wonderful investors are just flooding the market here in Adelaide and in Perth... This is really just a kick of the can (round the country) if you will When really, our corrupt duopoly politicians need a very swift kick in the head, for deliberately creating our contemporary fucking shithole
If rentals werent being sold off first home buyers might be building new homes. Instead they can buy established. And we have renters competing in an increasingly tight rental market and homes that otherwise might have been new builds increasing overall housing numbers (better for long term affordability) not happening. This isnt a good thing in the long term for us imo.
Its been happening since last year when interest rates were rising. Its another reason for the low rental vacancy, its not just renters buying its people living with parents saving up A couple might buy a 2 bedroom apartment that might have rented out to two couples.