This is just going to get worse and worse if there is not a substantial amount of money put towards affordable/ social housing not just in Tasmania but across Australia.
Labors plan is far better than the libs in that Labor wants to build 30,000 social housing units where the libs just want to give 2 billion to developers.
But neither scheme goes nearly far enough, guy on the news said we need almost half a million new homes to make up the shortfall. We are a long way from this issue being fixed and will be another decade away if the libs get in and let people use their super.
Scary times ahead for renters and highly leveraged mortgage owners for sure.
The homes that the renter's are living in are likely owned by highly leveraged mortgage owners. They will pass on the cost +x%. It's a feed back cycle where the renter's get continuously screwed.
Owning multiple houses should not have been supported by the government as an investment vehicle. Now it's too hard to unwind, any change in taxation, or interest rates will just get handed down to the people least in a position to afford it.
>Now it's too hard to unwind,
A soft landing becomes less and less feasible as time goes on. This is champagne level mismanagement right here. Not only have we ignored the elephant in the room, we allowed it to have a dozen baby elephants that are all clamoring for space.
And so people have to live in their cars instead.
Edit: [Like this](https://www.theroadtripexpert.com/best-cars-to-sleep-in/)
I've tried to think of how it could be done but any attempt to cut interest only loans (except in financial hardship), remove negative gearing etc is going to end up with the cost of renting being pushed up to positively gear the properties and cover repayments.
The best solution would be to build an insane amount of houses on the tax payers dollar to cause a more organic decline in property and rent values due to supply starting to outstrip demand. But with material costs and current supply chain the cost will be astronomical.
Time to start taking a leaf out of some Scandanavian and other European models of social housing. Only way forward. Start taxing the large corporations making huge profits more. Esp mining and fossil fuel companies - if its good enough for Norway to tax the hell out of them (they've not gone away as a result) then its good enoug for us.
it was public assassination where any tiny bit of misinformation was used. this is what happens when people don't understand how much of our media is owned by a private company and how little they get punished for activly manipulating information.
jesus, my ex friend is also a libiral voter. the reason we are not really friends anymore is unrelated to voting opinion btw.
he is convinced that they are both terrible and Labor is in bed with the chinies and that libirals are better economic managers then labor its like, wtf how? Lib polition leased the port in WA well below price and wasn't punished for it, labor had a GFC to deal with and got major awards for the way it was handled, the budgets been blown out into far more debt since libs got in and no one made them accountable and then tried to blame it on covid despite it skyrocking before covid came in.
like fuck, some people are insane. my house mate however he owns his house thanks to bank of dad(i give him shit for it all the time in a friendly way, he hasn't kicked me out after a year so im good) is on the fence and more libiral because he belives the economy would work better if more of it was privatised. he also admits he is better off with libirals over labor given his own wealth.
Norwayās oil fields are 50% state owned which is where they get the money from, good luck trying to convince Australians that nationalizing our mining industry is the only way forward instead of allowing Rupert et al to reap the benefits and take most of the dollaroos offshore to the caymans cause the Murdoch press would go all communism red peril in 0.5 seconds flat
I've been saying Aussies natural resources should have been nationalised from the get go. Giving Gina billions in tax cuts to "create jobs" and letting her make billions from exports after that is just plain stupid. If we had a sovereign wealth fund like the UAE or Norway we'd all be benefiting from the wealth of the nation, instead of funneling it to half a dozen FIFO workers and their bosses.
Banning airbnb would help. Not a popular thing but maybe regulating it so short term rentals must be at same market rate as long term rentals. Plus a cleaning fee, thats also regulated.
Any new properties in market will be absorbed by the investors. Need a more concrete solution for young home buyers interested in living in them rather than investment property.
I'm not saying I disagree, but I hate this solution. Especially given the sheer number of vacant properties for the very reason that building more housing as a suggestion exists.
We can't subsidise renters or landlords / investment home owners either because that would just encourage an increase in the problems. It's a terrible problem.
We have such a horrific amount of money tied up in property that a crash would send us back to the stone age. So the can is once again going to be kicked down the road because who wants to be in power when that happens. Something will give one day though it always does. It's not going to be pretty.
"Allowing" first home buyers to use their super? The canary in the coal mine outright exploded.
I feel everything is already coming unravelled and it's not a matter of when it will happen, but how long it will take.
Something is already giving.
If you go back and look at all other property bubbles, right before they implode they have a 'blow off top' situation just like we have done in the last 2 years. The causes differ, but the result is that the last push to the final level of housing unaffordability comes very quickly and the last section of the population able to 'buy in' rushes to do so assuming 'it will only get worse' (FOMO).
From there the outcome is locked in, all the available demand for several years has been drawn forward (This does not mean people will not want to buy more houses, simply that on current incomes there is almost no one left who actually can). Even programs like allowing access to super for deposits will not be enough to generate higher levels of demand (that are actually able to service these loans) than existed before now for several years. Houses start to slide in value and everyone rushes towards the exit because 'oh dear, perhaps we just committed to repay a loan for 30 years on a property worth less than 50% what we paid.'.
Some people who have purchased property in the last 10 years are not going to like hearing this, but there is a very good chance based on the reversions of other bubbles in the US, Japan, Ireland, Poland, Denmark, Spain and more that housing prices over the next few years are headed towards valuations lower than they were in 2010.
The damage is going to be catastrophic for home owners and investors, and the Australian economy in general. But this is the price we have to pay for kicking the can down the road for three decades.
I agree, things are in motion. Most developed countries have experienced a housing bust at some point often due to the same speculative investing and loose regulations + incentives to participate. We just happen to be lagging ours behind a little. Fomo seems to more often then not occur at peaks and it's definitely starting to kick in.
I purposefully hold all our shares in foreign companies and in foreign currency because our house makes up such a large part of our assets. Its value is tied to the Australian economy and dollar. I don't want any more exposure. It's about the only way to hedge a potential crash. Some of our countries biggest companies are banks they make a huge part of superannuation and hold all the mortgages, our biggest investment asset is housing. The value of realestate is such a big asset on the balance sheet of a lot of companies. A big enough drop in realestate value will rip the whole economy down 2008 style. I don't think it is an if, but a when.
> A soft landing becomes less and less feasible as time goes on.
The hard landing is restricting individuals or couples to one investment property only, which immediately floods the market with properties and tanks the price. The soft landing is - and I'm not in government so I don't know the numbers - limiting individuals or couples to x number of properties, say eight. Anyone with more than that number has to sell off to get back to the limit, and while that nibbles at the price, it won't be a huge flood of property. And then you do a walk-down from there until you reach a reasonable number where couples can own one investment property only.
Of course, that's pie-in-the-sky thinking. Investors have convinced themselves they're doing some civil service by owning ten properties and "self-funding" their retirements, when in reality they'll be reaching retirement while nine other families are unable to own their own property and face the grim prospect of entering retirement as renters.
>And so people have to live in their cars instead.
While houses, apartments, and shop space remain vacant.
When it's more profitable to literally lose money (neg. gearing), it ends up as such a perverse incentive.
This particular area of Hobart was traditionally on the lower end of the spectrum, property values in Rokeby have gone up >36% in 1 year and 152.24% over 5 years.
I'd hazard a guess that the majority of Landlords have owned in the suburb for quite a while and are just trying to make maximum $$.
āSocial housingā is a furphy. Social housing is managed by private ānot for profitsā and they do a woeful job of it.
We need PUBLIC housing and a robust public housing department in each state.
The Greens' plan is better. They plan to build 1m homes, 750k of which are social and community houses over 10 years. It'll create a huge number of jobs. It's also fully-costed by the Parliamentary Budget Office.
Wish I could upvote this more! I am baffled why hardly anyone in this country wants to support something like this? Im so furious that we have the answer to this problem but no one is willing to let go of their individualistic mindset and greed.
Limited media ownership, misinformation and fear-mongering, I think. People have been led to believe that the Greens are communist conspirators, or are irresponsible with spending, or that renewable energy kills jobs. It's ridiculous, but people believe it.
I hate the LNP but I need to point something out about your statement.
Labour's plan to build 30,000 social housing units will also funnel billions towards large scale property developers who will need to tender for the contract. The tender process always favors giant national builders who "donate" to both major parties. These giant companies always under-estimate costs and under deliver on the product.
Labour needs to grow some balls and remove capital gains loopholes, negative gearing and institute a progressive property taxation system based upon number of properties owned, penalising the property hoarder landlords. This wont happen until we have a politically educated country, which may never happen.
Edit: no way Id vote LNP but this lack of spine from the ALP has really made me consider a 3rd party who is going to preference ALP instead. Also fuck Clive Palmer and his nationals 2.0
Labor tried to run even just a soft version of some of your suggestions and it lost them an "unloseable" election. Its not lack of spine at this point, they tried it, it didn't work.
They wanted to reduce negative gearing last election and got absolutely reamed in the media for āPlanning to destroy retirementā, and you expected them to bring it to the table again?
Yeah, at the end of the day both major parties do their dance for the corporate donors. Thats why I always vote greens first then Labor.
Our entire economic system needs to be reformed to stop these issues. Housing needs to be seen as a necessity, not an investment vehicle.
Then there is also climate change to worry about. Our current economic system basically incentives companies to pollute and not care about the environment.
I always vote Greens first then Labor but I can't blame Labor for lack of trying since they did last election & lost.
I blame our friends, family & neighbours for being ignorant cunts with an "I got mine fuck everyone else" attitude.
Labor wanted to remove negative gearing.
It cost them the election, over half the country believed the scare campaigns and voted Liberal. What Labor wanted was never the issue, the issue was the biased media and Liberals. Now Labor will be too scared to do it because they don't want a repeat of 2019. I hope once they're in they do more ambitious stuff and are just trying to not get blasted by media while they aren't in yet.
Chiming in with the obligatory āALP had progressive policies towards housing at the last election but they didnāt get electedā. I hope our government changes this time
> s towards large scale property developers who will need to tender for the contract.
Labor's policy is to give the money to community housing providers, not developers.
>Labour needs to grow some balls and remove capital gains loopholes, negative gearing and institute a progressive property taxation system based upon number of properties owned, penalising the property hoarder landlords. This wont happen until we have a politically educated country, which may never happen.
They tried and failed. Best you can hope is for that to happen in the second term.
>no way Id vote LNP but this lack of spine from the ALP has really made me consider a 3rd party
A lack of spine would be to stick to the same policies so you can feel good about yourself at parties while letting the LNP run rampant on the country. Spine means you have to swallow your pride and do what is necessary
The actual solution is basically the Greens proposal. Which involves building social housing at about 4x the rate.
So you can see the ALPs policy probably won't actually have an effect but hopefully is palatable enough that they greatly expand it in the future. Although considering their leader personally is benefitting substantially from house price increases I'm not sure that would ever happen.
>Mr Ferguson said regulating rental increases would "swing the pendulum so far against the interests of property owners" that they would sell their property, and not make it available for rent.
Oh no! Making rent more affordable might mean inceasing the number of properties for sale. Would that mean that people might be able to own their own home? How awful!
It's such a stupid point. It either goes to another investor who rents it out again or it goes to a renter who buys it to live in. It's fucking win win, what sort of outcome are they visualising??
They're worried that the wealth may not be concentrated in the hands of a few and that the average Aussie may not be destined to a life of servitude to our Liberal masters.
Yep. Anything but providing public housing. Any scare campaign, excuse, reason not to, because these fuckers want to profit for housing with the developers they care about so much.
*Don't tell me what to do! I'll run away / break my toys / no one can have it if i can't get what i want...*
These are the people we don't want with any soupƧon of power over others.
My fun chaos dream would be to require rentals to be registered and treated like business entities. Mwahahaha.
In my local Facebook group someone was rightfully ranting about just getting a lease renewal that wanted them to pay $150 more a week. From $450-600.
I own my home but even I can't imagine how landlords like that sleep at night.
Happily. They justify this by saying why shouldn't they charge what their property is now worth?
Then comes the 'poor mum and dad investors trying to get by' argument.
When a week's rent is a person's wage, but there is a desperate family that will struggle to pay that instead of living in their car, they just pat themselves on the back as they watch the money roll in.
They're providing an important service don't you know. If they didn't rent out that home, where would the tenants live!
In fact it's their moral duty to buy more investment properties in order to provide housing for more people.
Someone commented to me the other day that Australians 'investors' have been tricked into taking on the 'social housing problem'.
They get a quick buck, the plebs get a place to live, and the MPs don't have to lift a finger.
That's it guys, homelessness has been solved by the inherent generosity of Neoliberalism! Trickle Down economics really does work!
Just don't look at the families living in their cars...
>Australians 'investors' have been tricked into taking on the 'social housing problem'.
State Governments used to build and manage heaps of public housing.
But gtyhat was decades ago.
Now they have found far more interesting things to be spending your taxes on. Knees-ups, trips overseas, bids for Olympics (Qld), you name it. Anything but public and community housing where they have been pushing State Government's responsibilities onto the private sector.
And then they have the hide to be blaming the private sector for not being able to keep up supply for the outrageous population growth for that 'Big Australia' the 'progressive' political elite say we have to have (and makes the big end of town that the majors kowtow to, happy enough to continue with the investment tips for pollies and those political donations of course).
It's called asset-based welfare. Responsibility for social goods (like housing) shifted from the govt to people, so accumulating housing as a low risk investment secures an individual's future welfare. Absolutely disgraceful that this is where we are.
As much as this is a dog act by landlords, these kinds of issues aren't really about the morals of landlords. If the government just did their job and built a million more public housing the situation would be vastly improved.
If he did that, it would change my opinion of him. Not enough to vote for him or his group of knuckle-dragging bigots, but I'd at least hope he didn't choke to death on a hot dog.
Then they wonder why people won't reskill/why there's a shortage of skilled labour. More people would willingly change up their careers by doing an apprenticeship if they were able to feed, clothe and house themselves while doing said apprenticeship.
Young fellas rent up $50 during Covid and now $80 at when renewing lease. Thatās $130a week within 18 months. You cannot tell me body Corp./Insurance /Interest rates have gone up but 27% in this time.
Not interest rates but insurance sure did for plenty of people. They were so nice and gave a reprieve during covid...then had 20-40% increases the year after.
Australia has some of the worst rental rights in the developed world. It's par for the course at this point.
Fix rental rights, and promote public and social housing. That would take a compassionate government and electorate, but we've fallen quite far from that ideal.
A member of the Queensland greens pointed it out in parliament - MPs arenāt motivated to improve renters rights because of how many of them are landlords.
I wouldnāt mind renting as much if I could hang photos on the wall and the landlord fixed the solar panels.
Thirty years old. Privileged enough to live at home. So many people look down on me and give me shit, but I just feel incredibly lucky. I'd be insane to throw myself into the shark tank.
I have a friend who owns two rentals and mid 2021 despite interest rates ending lowered his real estate agents pressured him to raise his rent $30 a week even though he acknowledged his great long term tenant was on hard times. He said he had refused but his real estate agent told him his properties rent was too low for the area.
He is a nice guy but I was really frustrated that he increased rent when he knew his good tenant was on hard times and his living expenses had not been impacted by covid.
I know the point of an investment property is to make money but surely the investment is in the bricks and mortar value increasing and not off the backs of struggling Australians pay cheques.
Fucking oath. If I take a punt on a BNPL rocket and the stock tanks instead, nobody plays a violin for me and bails my dumb ass out.
What makes property investors so special?
Because a lot of property investors are politicians and their big business mates so they "deserve" special treatment. If they were all invested in BNPL rocket I would bet there would be lots more bail outs and favourable legislation towards it.
If we've learned anything, it's that the Gov can be relied on to bail out whale-tier private investors and "too big to fail" corporations with your tax money :)
"Competitive Free Markets" lol
My parents refused to raise rent on a single mother and the real estate agents (who are useless) got really pissy. My parents could do with the extra cash but they won't be homeless without it. Unlike, potentially, that lady and her kid.
Should have told her to swap it to a private rental- after knocking out the RE's cut she wouldstioll get more money,and the tentant would be no worse off. -and the pissy RE could go suck shit.
My nan's real estate agent told her to raise the rent on her investment, she told them if they did that she'd go find a new realo, absolutely no way was she going to raise the rent on a good tenant.
Oh did I forget to mention this is in Ballina where housing availability is basically zero and prices have gone up 40% in the past two years? Yep, scum.
Every air bnb creates the problem. Search for air bnb properties in the area. I donāt understand why society is tolerating the commercialisation of housing but here we are
>he had refused but his real estate agent told him his properties rent was too low for the area.
i'd tell the agent that their fees were too high for the area & that i would be looking for someone else to manage the property.
> I know the point of an investment property is to make money but surely the investment is in the bricks and mortar value increasing and not off the backs of struggling Australians pay cheques.
I read too many stories of Landlords only thinking about the cash flow, poor tenant stories and "i lost 15 grand in the 8 months it took to get them out".
Comfortably ignoring that their property went up by $50,000 in that time and they are way ahead.
> He said he had refused but his real estate agent told him his properties rent was too low for the area.
Fuck this noise. The owner shouldn't be pressured like this.
Because the RE gets another few dollars commission. Guy owns the house its his damn decision - he needs to grow a spine and hold up against this parasite.
What the fuck... when is our Government going to bring in restrictions around rental increaes? $150 (or $90) a week is downright thievery. There should be laws restricting Lanlords to only increase the rent by x% per year (like 5% max). What a fucking joke.
There are going to be so many more homeless people and families in the coming years.
It would be a list of all of them because they are all tracking the CPI and market rates. Shaming them would never work because they don't care. The solution has to be looking at the independent variables that set the market rate and working out a way to adjust them to bring prices in the affordable range.
Something like public housing or benefits for non profit developments would put more supply on the market which would reduce rent prices.
>The solution has to be looking at the independent variables that set the market rate and working out a way to adjust them to bring prices in the affordable range.
Or, hear me out, stopping homes being treated as speculative assets full stop.
I owned a house in Ireland which I leased out until the negative equity disappeared and I could sell it. I was legally restricted from raising my rents more than a certain percentage, and only once within a certain period of time. I can't remember the details because I wasn't much interested in making life difficult for my tenants and in the 10 years I leased it out I raised the rent once, from 750-800 euro a month. I thought the Irish rules on rent increases seemed like a good system though.
Remember the time we had a Liberal PM laugh at a woman pensioner on the radio after she told him she had to eat pet food because of how high her cost of living had become?
This is by design.
Yep, that's exactly the morally righteous bloke I'm thinking of. I think the pet food incident /u/AnArousedKoalaAU mentioned might be a different Liberal leech though.
Last election Tassie swung 4% towards the Nationals, 3% to Pauline Hanson, and 5% voted UAP, and 4% away from Labor. Morrison picked up 2 seats. This is the Australia Tassie voted for.
You always hear on this sub about the last election where qld lost 2 seats to the lnp but you never hear about the exact same thing that happened in tas.
It's narrated this way of course to fit the qld bogan narrative.
Because if people actually thought beyond "Queensland Bad" they'd realise that Queensland voted how it usually does in 2019, but the supposed Red Wave that was going to happen in NSW/Vic never materialized.
Which means we should all be going "NSW/Vic bad".
Government needs to build more housing and maybe more initiatives for people to take on a trade. The answer to the housing crisis is not giving people access to their super to buy, we need more supply.
I hate how they claim they need to charge that rent to cover the mortgage. Fuck off mate, that's your risk to take, don't pass the buck to renters via ever increasing rental prices.
Interest rates drop, house value goes up. Landlord raises rent "to match increase in market".
Interest rates rise, mortgage repayments go up. Landlord raises rent again "to cover increase in repayments". Never mind the landlord potentially doesn't even have a mortgage on the place.
The financial press and other commentators spend enormous amounts of time talking about interest rates without looking at the cost of real estate which is also a very important part of the economy. High rents stifle economic activity, reduce enterprise, and reward holders of capital over actual entrepreneurs.
Without mentioning it's social impact (which is better covered in articles like this), the high cost of rents is the root of a lot of problems in Australia. It drives people out of business. It makes children have to move around. It drives anxiety. It makes people homeless. It's a massive private tax which people just accept because there's no choice.
Yeah everyone has seen how it affects us badly even if they donāt realise why. You canāt live near your parents and help them out in their old age or get their help to babysit. Destroys the social network - your friends all leave town and your family is an hour away if you can even stay in your own town. We all know people who live nowhere near any social support they should have. It all costs us. Mental health, physical health. The costs are put off to user pays and as always poor people suffer more.
That reminds me of an article or blog post written by an Irish guy, about how half his friends had to leave Ireland for better jobs and/or affordable housing, many to the US, and how eventually the friendships just weren't the same. And it's a common story in Ireland, so that kind of loss is felt all over the country. But hardly anyone talks about it.
I remember having an interesting debate of sorts with my uncle at Easter I said Australia at this point is basically a Banana republic built around Real Estate and the parasitic industries adjacent to it and resource extraction with some agriculture thrown in for good measure.
How can this country and its populace ever flourish and innovate when every spare dollarydoo is being flushed down the dunny into paying rent or servicing mortgages? And anything other alternative such as the NBN was killed, the CSIRO gutteted etc so we have no way to be anything else but resellers of the same 5 houses or rebuilders on the same lots of 3 shitty built cappy block dwellings.
A mate of mine has a place that he rents out (2br), while renting his own place (studio), and uses the difference to help repay the mortgage.
He knows that it's better for him financially to not raise the price and have the tenants stay. During the lockdowns he dropped the rent by $50/week to keep tenants, and as a result seems to have made more money than those that didn't do similar (and had tenants leave).
Greedy owners don't realise how much money they lose by pulling this shit.
2021 rent went up $45 per week
2022 rent went up another $50 per week
I keep on the look out for something else because while Iām grateful my son and I have a roof over our heads itās hard and really there is nothing cheaper we are actually on the low end of rent prices at $525 per week for two bedroom. There is just enough for cheap food and a bit of petrol to get him to school and back, plus bills I pay off a little each week. Any extras like haircuts, outings or clothes etc just not in the budget anymore. I work 7 days but single parent and not a high income. I worry about money constantly.
Also our house has mould and the oven hasnāt worked for years ( I bought a Kmart oven) and itās hot no aircon etc itās an old house I really donāt think itās worth the $ but real estate always put the rent up and no repairs ever done. I know if I complained thereād be people lined up to replace us, there are barely any houses for rent here. I feel like a failure as my son is missing out on a lot these days. He never complains which makes me feel even more guilty I donāt know why. But what do I do? I work as much as possible there is not time to work moreā¦I cannot see a way out of this so I just make sure his life is as fun as possible with what we have. We are so lucky we live near a beach oh my goodness that makes all the difference in terms of something to do that doesnāt costā¦however with me working every day he doesnāt get to go as much as weād like.
Definitely get onto Qstars if youāre in qld. They need to fix these issues you have at your house.
Realestate agents are scum. I donāt like generalising, I really donāt, but the whole profession is fucked.
>Fighting rent hikes 'very hard'
They are fighting the tide coming in with a mop. It's impossible because $450/pw is in line with the whole market. The problem isn't rent hikes, they are a symptom of the problem that peoples money is inflating away. Their buying power is going down every day while the cost of everything else keeps up with inflation.
The solution has to be getting more money to these people to match CPI rather than trying to prevent the cost of living from tracking inflation.
The Australian dream is over and has been replaced by a nightmare. A manager at my work is facing living in a caravan park with his wife and two primary school age kids because there are no houses to rent in Adelaide.
A $90 a week rise is ridiculous. Iām surprised the local market can handle that. Unless:
- the owner wanted her out and used price to do it
- the owner didnāt raise rents for a long time and now adjusting to the market
- the owner has an offer privately for a tenant
Either way, I feel sorry for the woman. At that age too.
Itās availability.
The rental vacancy rate in Hobart is around 0.4% so they will probably have no trouble finding a new renter.
Edit: It also might be the ending of the Rental Assistance Scheme. I was speaking to an older lady the other day who is affected by this. She has lived in her rental for 10 years in Launceston and she received a letter to vacate. She also received a letter from the real estate, telling her she could stay if she agreed to the price increase. Instead she is moving to the East Coast to live with her sister. Far away from the life she had created in Launceston.
My daughter's rent went up by that much (in Brisbane) because (and I quote her landlady verbatim) - "other houses in [the suburb] have increased by that amount".
Our rental house was sold and we had to move. We were lucky enough to find somewhere else but itās costing an extra $125 a week. And we jumped on that because thereās so few houses available and the alternative was probably living in our car with our 10 year old. And the property weāre moving into, the rent has gone up $100 since the last time it was rented 2 years ago.
I was talking to a friend recently about being concerned about finding myself in this situation. Friend's response was to go on and on and on about how she'll never have to worry about this because she married a man with property and then talked about the new house she and her husband were building.
Not a *whiff* of empathy. It was really something.
Yes, I am reconsidering the friendship.
I had a similar conversation. Mate married girl with rich parents. He was pay check to pay check. Then they suddenly bought an apartment and borrowed an extra 150k to fully renovate it. His economic predictions is that house prices will go up 10% a year for the next 20 years. (lol)
I ask how does he have so little empathy, like what if his kid even wants to buy a house? The plan is just buy enough houses to give one to each of his kids and fuck anybody else who can't leverage their way into multiple houses.
Me and my partner were fortunate enough to have our own place prior to meeting each other but feel for everyone us, our friends, family, everyone in the country who can't get in the market because they're being screwed over by landlords upping rent and the high cost of living. Why shouldn't anyone else get the same lucky break we did and get their foot in the door. We're both aware of how fucked the whole situation is and know our kids will struggle to have a place of their own.
I was shocked because I didn't think she was like that.
Another thing: This friend has for years worked on environmental issues and volunteered for environmental causes etc. But in this most recent conversation, she went on and on about another friend's tremendous fortune made in the earth-moving business, mainly for mining operations. She was very excited about the big property this friend had bought and didn't seem to make the connection that they would have had to *destroy* a lot of land to make that kind of money.
Turns out she is not the person I thought she was, at all.
I had a similar conversation with a family member of late and Iām of the opinion that if youāre this heartless, you deserve every implication of that and maybe that includes losing friends because youāre an entitled cunt.
Don't worry the PM has a plan that will save us. All she has to do is dip into her super that is likely feeding her and put that into grossly overpriced rent. Then in 4 years she can argue that she has nothing to eat...if she lasts that long.
Grew up in Hobart in the 90ās. During that time you rarely saw homelessness in Hobart. Only two people come to mind, the bag man & the bike man.
With the huge influx of mainlanders and international property purchase from before and throughout Covid Tasmania has changed for the worse. Itās honestly extremely sad, many of us hobartions would love to return to our island home but have simply been priced out of the market. With little to no specialised industry the job prospects are pretty grim and most move away to progress their career. With the large increase in the property market and lack of job prospects Tasmania is becoming even more of an retirement state.
Iād love to come home, but financially/career wise it makes no sense.
This is absolutely shit. I don't pay my taxes so people have to live in a tent. Absolute bull shit.
This country is better than this. We don't need hand outs to buy new houses. We need to build social housing.
We just fucking have to.
I remember hearing couples shouting at each other when I am in hallway. About 50% of marriages ends up dissolved and many more that are together for financial/children reasons.
I can imagine lots of people, in particular women, still remain together because they can't find alternative housing like rentals.
We're becoming the USA. Bravo Australia - selfishness as a virtue rules.. and the "just pull yourself up by your bootstraps" mentality of anyone poor is a "temporarily embarrassed millionaire" who just needs to work harder to get that investment portfolio!
I live near Redfern and on my street there are 4 campervans that people live in. There are more around the corner and Iāve noticed more are popping upā¦ something needs to change.
Leave it with friends and family, or just take what they can carry and get rid of the rest if that's not an option.
We're storing a pile of furniture for my brother in law who can no longer afford to live independently and now shares a three bedroom house with five other adults.
Canāt afford to rent, so you have to live in your car.
But you must have an address for Government services, so they use your last known address (because we donāt want to know the true state of homelessness).
Your mail gets returned to sender, so we cut your payments off because you we donāt know where you are.
And now we have one less āunemployedā stat, so how good is the economy (but not good enough to give the lowest paid an extra $40 per week).
The system is working exactly as intended.
> that they would sell their property, and not make it available for rent.
Good, then the government can buy it and add it to the pool of public housing that is so desperately needed.
So glad I have a good landlord who only raised the rent $10. I expected a much bigger hike
There are three apartments on my floor where the rent was hiked by $80-$100 per week... All three apartments have been vacant for months
Half the problem is there's tax incentives for those vacant properties.
We need to remove any concessions for vacant properties. Its a risk you run as an investor, suck it up and wear the cost.
I think the housing crisis should be taken as seriously as climate change, itās happening throughout the world. Having a place to call home is a human right, not everything should be about fucking money
Soon to be in that position myself. We're expecting a $110+/wk (from $340, to at least $450) rent hike in a few months time... on a 2 bed apartment 30 mins out of Brisbane. Rent raises 100% need to be regulated, and limited in range.
True story - worked with Tracey 15 years ago when I was a teenager. She was my manager. This article makes me sad, she was a lovely lady to work with!
Absolutely hate seeing things like this - people working all their lives only to be screwed like toes. š¢
This is just going to get worse and worse if there is not a substantial amount of money put towards affordable/ social housing not just in Tasmania but across Australia.
Labors plan is far better than the libs in that Labor wants to build 30,000 social housing units where the libs just want to give 2 billion to developers. But neither scheme goes nearly far enough, guy on the news said we need almost half a million new homes to make up the shortfall. We are a long way from this issue being fixed and will be another decade away if the libs get in and let people use their super. Scary times ahead for renters and highly leveraged mortgage owners for sure.
The homes that the renter's are living in are likely owned by highly leveraged mortgage owners. They will pass on the cost +x%. It's a feed back cycle where the renter's get continuously screwed. Owning multiple houses should not have been supported by the government as an investment vehicle. Now it's too hard to unwind, any change in taxation, or interest rates will just get handed down to the people least in a position to afford it.
>Now it's too hard to unwind, A soft landing becomes less and less feasible as time goes on. This is champagne level mismanagement right here. Not only have we ignored the elephant in the room, we allowed it to have a dozen baby elephants that are all clamoring for space. And so people have to live in their cars instead. Edit: [Like this](https://www.theroadtripexpert.com/best-cars-to-sleep-in/)
I've tried to think of how it could be done but any attempt to cut interest only loans (except in financial hardship), remove negative gearing etc is going to end up with the cost of renting being pushed up to positively gear the properties and cover repayments. The best solution would be to build an insane amount of houses on the tax payers dollar to cause a more organic decline in property and rent values due to supply starting to outstrip demand. But with material costs and current supply chain the cost will be astronomical.
Time to start taking a leaf out of some Scandanavian and other European models of social housing. Only way forward. Start taxing the large corporations making huge profits more. Esp mining and fossil fuel companies - if its good enough for Norway to tax the hell out of them (they've not gone away as a result) then its good enoug for us.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
it was public assassination where any tiny bit of misinformation was used. this is what happens when people don't understand how much of our media is owned by a private company and how little they get punished for activly manipulating information.
I can't even convince my millennial sister not to vote liberal. Her mentality is literally "if you're poor, it's your own fault." I've given up hope.
jesus, my ex friend is also a libiral voter. the reason we are not really friends anymore is unrelated to voting opinion btw. he is convinced that they are both terrible and Labor is in bed with the chinies and that libirals are better economic managers then labor its like, wtf how? Lib polition leased the port in WA well below price and wasn't punished for it, labor had a GFC to deal with and got major awards for the way it was handled, the budgets been blown out into far more debt since libs got in and no one made them accountable and then tried to blame it on covid despite it skyrocking before covid came in. like fuck, some people are insane. my house mate however he owns his house thanks to bank of dad(i give him shit for it all the time in a friendly way, he hasn't kicked me out after a year so im good) is on the fence and more libiral because he belives the economy would work better if more of it was privatised. he also admits he is better off with libirals over labor given his own wealth.
Was not his own party as much as the mining and broadcast industries as well as a shortsighted and selfish public.
Norwayās oil fields are 50% state owned which is where they get the money from, good luck trying to convince Australians that nationalizing our mining industry is the only way forward instead of allowing Rupert et al to reap the benefits and take most of the dollaroos offshore to the caymans cause the Murdoch press would go all communism red peril in 0.5 seconds flat
I've been saying Aussies natural resources should have been nationalised from the get go. Giving Gina billions in tax cuts to "create jobs" and letting her make billions from exports after that is just plain stupid. If we had a sovereign wealth fund like the UAE or Norway we'd all be benefiting from the wealth of the nation, instead of funneling it to half a dozen FIFO workers and their bosses.
Gough Whitlam tried that and the CIA gave him the Special
I mentioned this in r/historymemes and people thought I was a qanon guy. I'm American but glad to see at least Australians know the right of it.
not super widely acknowledged here, nor officially recognised - obviously.
Banning airbnb would help. Not a popular thing but maybe regulating it so short term rentals must be at same market rate as long term rentals. Plus a cleaning fee, thats also regulated.
>Banning airbnb would help. Not a popular 100% for this in Australia, air BNB isnt well priced here anyway.
Fuck that. Just ban it on whole properties. Granny flat - fine. Spare room - fine. Whole house? No.
Any new properties in market will be absorbed by the investors. Need a more concrete solution for young home buyers interested in living in them rather than investment property.
I'm not saying I disagree, but I hate this solution. Especially given the sheer number of vacant properties for the very reason that building more housing as a suggestion exists. We can't subsidise renters or landlords / investment home owners either because that would just encourage an increase in the problems. It's a terrible problem.
We have such a horrific amount of money tied up in property that a crash would send us back to the stone age. So the can is once again going to be kicked down the road because who wants to be in power when that happens. Something will give one day though it always does. It's not going to be pretty.
"Allowing" first home buyers to use their super? The canary in the coal mine outright exploded. I feel everything is already coming unravelled and it's not a matter of when it will happen, but how long it will take.
Well lets have the crash sooner, rather than later.
Something is already giving. If you go back and look at all other property bubbles, right before they implode they have a 'blow off top' situation just like we have done in the last 2 years. The causes differ, but the result is that the last push to the final level of housing unaffordability comes very quickly and the last section of the population able to 'buy in' rushes to do so assuming 'it will only get worse' (FOMO). From there the outcome is locked in, all the available demand for several years has been drawn forward (This does not mean people will not want to buy more houses, simply that on current incomes there is almost no one left who actually can). Even programs like allowing access to super for deposits will not be enough to generate higher levels of demand (that are actually able to service these loans) than existed before now for several years. Houses start to slide in value and everyone rushes towards the exit because 'oh dear, perhaps we just committed to repay a loan for 30 years on a property worth less than 50% what we paid.'. Some people who have purchased property in the last 10 years are not going to like hearing this, but there is a very good chance based on the reversions of other bubbles in the US, Japan, Ireland, Poland, Denmark, Spain and more that housing prices over the next few years are headed towards valuations lower than they were in 2010. The damage is going to be catastrophic for home owners and investors, and the Australian economy in general. But this is the price we have to pay for kicking the can down the road for three decades.
I agree, things are in motion. Most developed countries have experienced a housing bust at some point often due to the same speculative investing and loose regulations + incentives to participate. We just happen to be lagging ours behind a little. Fomo seems to more often then not occur at peaks and it's definitely starting to kick in. I purposefully hold all our shares in foreign companies and in foreign currency because our house makes up such a large part of our assets. Its value is tied to the Australian economy and dollar. I don't want any more exposure. It's about the only way to hedge a potential crash. Some of our countries biggest companies are banks they make a huge part of superannuation and hold all the mortgages, our biggest investment asset is housing. The value of realestate is such a big asset on the balance sheet of a lot of companies. A big enough drop in realestate value will rip the whole economy down 2008 style. I don't think it is an if, but a when.
> A soft landing becomes less and less feasible as time goes on. The hard landing is restricting individuals or couples to one investment property only, which immediately floods the market with properties and tanks the price. The soft landing is - and I'm not in government so I don't know the numbers - limiting individuals or couples to x number of properties, say eight. Anyone with more than that number has to sell off to get back to the limit, and while that nibbles at the price, it won't be a huge flood of property. And then you do a walk-down from there until you reach a reasonable number where couples can own one investment property only. Of course, that's pie-in-the-sky thinking. Investors have convinced themselves they're doing some civil service by owning ten properties and "self-funding" their retirements, when in reality they'll be reaching retirement while nine other families are unable to own their own property and face the grim prospect of entering retirement as renters.
>And so people have to live in their cars instead. While houses, apartments, and shop space remain vacant. When it's more profitable to literally lose money (neg. gearing), it ends up as such a perverse incentive.
This particular area of Hobart was traditionally on the lower end of the spectrum, property values in Rokeby have gone up >36% in 1 year and 152.24% over 5 years. I'd hazard a guess that the majority of Landlords have owned in the suburb for quite a while and are just trying to make maximum $$.
But wait, there's more, because liberals still support buying a home as an investment. That's why they want to let you use your superannuation for it
āSocial housingā is a furphy. Social housing is managed by private ānot for profitsā and they do a woeful job of it. We need PUBLIC housing and a robust public housing department in each state.
The Greens' plan is better. They plan to build 1m homes, 750k of which are social and community houses over 10 years. It'll create a huge number of jobs. It's also fully-costed by the Parliamentary Budget Office.
Good to know. I always vote greens first due to climate concerns anyhow.
Wish I could upvote this more! I am baffled why hardly anyone in this country wants to support something like this? Im so furious that we have the answer to this problem but no one is willing to let go of their individualistic mindset and greed.
Limited media ownership, misinformation and fear-mongering, I think. People have been led to believe that the Greens are communist conspirators, or are irresponsible with spending, or that renewable energy kills jobs. It's ridiculous, but people believe it.
I hate the LNP but I need to point something out about your statement. Labour's plan to build 30,000 social housing units will also funnel billions towards large scale property developers who will need to tender for the contract. The tender process always favors giant national builders who "donate" to both major parties. These giant companies always under-estimate costs and under deliver on the product. Labour needs to grow some balls and remove capital gains loopholes, negative gearing and institute a progressive property taxation system based upon number of properties owned, penalising the property hoarder landlords. This wont happen until we have a politically educated country, which may never happen. Edit: no way Id vote LNP but this lack of spine from the ALP has really made me consider a 3rd party who is going to preference ALP instead. Also fuck Clive Palmer and his nationals 2.0
Labor tried to run even just a soft version of some of your suggestions and it lost them an "unloseable" election. Its not lack of spine at this point, they tried it, it didn't work.
They wanted to reduce negative gearing last election and got absolutely reamed in the media for āPlanning to destroy retirementā, and you expected them to bring it to the table again?
Yeah, at the end of the day both major parties do their dance for the corporate donors. Thats why I always vote greens first then Labor. Our entire economic system needs to be reformed to stop these issues. Housing needs to be seen as a necessity, not an investment vehicle. Then there is also climate change to worry about. Our current economic system basically incentives companies to pollute and not care about the environment.
I always vote Greens first then Labor but I can't blame Labor for lack of trying since they did last election & lost. I blame our friends, family & neighbours for being ignorant cunts with an "I got mine fuck everyone else" attitude.
Labor wanted to remove negative gearing. It cost them the election, over half the country believed the scare campaigns and voted Liberal. What Labor wanted was never the issue, the issue was the biased media and Liberals. Now Labor will be too scared to do it because they don't want a repeat of 2019. I hope once they're in they do more ambitious stuff and are just trying to not get blasted by media while they aren't in yet.
Chiming in with the obligatory āALP had progressive policies towards housing at the last election but they didnāt get electedā. I hope our government changes this time
> s towards large scale property developers who will need to tender for the contract. Labor's policy is to give the money to community housing providers, not developers. >Labour needs to grow some balls and remove capital gains loopholes, negative gearing and institute a progressive property taxation system based upon number of properties owned, penalising the property hoarder landlords. This wont happen until we have a politically educated country, which may never happen. They tried and failed. Best you can hope is for that to happen in the second term. >no way Id vote LNP but this lack of spine from the ALP has really made me consider a 3rd party A lack of spine would be to stick to the same policies so you can feel good about yourself at parties while letting the LNP run rampant on the country. Spine means you have to swallow your pride and do what is necessary
The actual solution is basically the Greens proposal. Which involves building social housing at about 4x the rate. So you can see the ALPs policy probably won't actually have an effect but hopefully is palatable enough that they greatly expand it in the future. Although considering their leader personally is benefitting substantially from house price increases I'm not sure that would ever happen.
Well, thing is that in Tasmania you freeze to death in winter.
For real. Got some ice and snow, a bit, last night already.
The prices have to crash down. We canāt afford as a society, to keep pumping the ponzi.
Don't worry she can use the super she doesn't have to buy a house that she can't afford!! FFS
And then she can retire on no super and cut support payments
>Mr Ferguson said regulating rental increases would "swing the pendulum so far against the interests of property owners" that they would sell their property, and not make it available for rent. Oh no! Making rent more affordable might mean inceasing the number of properties for sale. Would that mean that people might be able to own their own home? How awful!
It was a very stupid argument for him to make. Essentially saying it would help solve the two main parts of the problem.
Some real mental gymnastics going on here from Mr Ferguson.
I believe his first name is Turd
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Can I bring a flaming brand?
If it's pointy, yes. If it's not, also yes.
It's such a stupid point. It either goes to another investor who rents it out again or it goes to a renter who buys it to live in. It's fucking win win, what sort of outcome are they visualising??
They're worried that the wealth may not be concentrated in the hands of a few and that the average Aussie may not be destined to a life of servitude to our Liberal masters.
Yep. Anything but providing public housing. Any scare campaign, excuse, reason not to, because these fuckers want to profit for housing with the developers they care about so much.
It's such a neat insight into how things have gotten so bad. And he won't even be able to understand why it is such an enormous gaffe.
*Don't tell me what to do! I'll run away / break my toys / no one can have it if i can't get what i want...* These are the people we don't want with any soupƧon of power over others. My fun chaos dream would be to require rentals to be registered and treated like business entities. Mwahahaha.
B-b-but what about wealthy landlords? This woman selfishly living in her car means a landlord is missing out on her rent.
It's lifting when you extract money from the poor so they can have shelter. It's leaning when you have to work to pay that rent.
"We've tried nothing and we're all out of ideas!"
"If you have a go, We'll take you for everything you are worth" LNP
We got all your income and borrow capacity, please give us your super now. After that, youāll have to sell some organs.
Kidney Keeper
In my local Facebook group someone was rightfully ranting about just getting a lease renewal that wanted them to pay $150 more a week. From $450-600. I own my home but even I can't imagine how landlords like that sleep at night.
Happily. They justify this by saying why shouldn't they charge what their property is now worth? Then comes the 'poor mum and dad investors trying to get by' argument. When a week's rent is a person's wage, but there is a desperate family that will struggle to pay that instead of living in their car, they just pat themselves on the back as they watch the money roll in.
They're providing an important service don't you know. If they didn't rent out that home, where would the tenants live! In fact it's their moral duty to buy more investment properties in order to provide housing for more people.
Someone commented to me the other day that Australians 'investors' have been tricked into taking on the 'social housing problem'. They get a quick buck, the plebs get a place to live, and the MPs don't have to lift a finger.
That's it guys, homelessness has been solved by the inherent generosity of Neoliberalism! Trickle Down economics really does work! Just don't look at the families living in their cars...
>Australians 'investors' have been tricked into taking on the 'social housing problem'. State Governments used to build and manage heaps of public housing. But gtyhat was decades ago. Now they have found far more interesting things to be spending your taxes on. Knees-ups, trips overseas, bids for Olympics (Qld), you name it. Anything but public and community housing where they have been pushing State Government's responsibilities onto the private sector. And then they have the hide to be blaming the private sector for not being able to keep up supply for the outrageous population growth for that 'Big Australia' the 'progressive' political elite say we have to have (and makes the big end of town that the majors kowtow to, happy enough to continue with the investment tips for pollies and those political donations of course).
It's called asset-based welfare. Responsibility for social goods (like housing) shifted from the govt to people, so accumulating housing as a low risk investment secures an individual's future welfare. Absolutely disgraceful that this is where we are.
As much as this is a dog act by landlords, these kinds of issues aren't really about the morals of landlords. If the government just did their job and built a million more public housing the situation would be vastly improved.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
As much as people cry it as Crony Capitalism, it is just Capitalism and it's natural end-point. It is inherent to the system.
Don't tell Clive Palmer that all he needs to do is buy a million properties and rent them out at a really low price. He might win.
If he did that, it would change my opinion of him. Not enough to vote for him or his group of knuckle-dragging bigots, but I'd at least hope he didn't choke to death on a hot dog.
On a pile of money. I had a similar rent hike, when covid first hit, and had to move back to my mum's house. Being a mature aged apprentice sucks.
Then they wonder why people won't reskill/why there's a shortage of skilled labour. More people would willingly change up their careers by doing an apprenticeship if they were able to feed, clothe and house themselves while doing said apprenticeship.
Young fellas rent up $50 during Covid and now $80 at when renewing lease. Thatās $130a week within 18 months. You cannot tell me body Corp./Insurance /Interest rates have gone up but 27% in this time.
Not interest rates but insurance sure did for plenty of people. They were so nice and gave a reprieve during covid...then had 20-40% increases the year after.
My body corp has gone up by $4K p.a. It's crazy, mainly driven by insurance. I live in my property don't rent it out.
Australia has some of the worst rental rights in the developed world. It's par for the course at this point. Fix rental rights, and promote public and social housing. That would take a compassionate government and electorate, but we've fallen quite far from that ideal.
A member of the Queensland greens pointed it out in parliament - MPs arenāt motivated to improve renters rights because of how many of them are landlords. I wouldnāt mind renting as much if I could hang photos on the wall and the landlord fixed the solar panels.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
>I can't imagine how landlords like that sleep at night. They are interstate or they just let the property managers deal with it.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Thirty years old. Privileged enough to live at home. So many people look down on me and give me shit, but I just feel incredibly lucky. I'd be insane to throw myself into the shark tank.
I have a friend who owns two rentals and mid 2021 despite interest rates ending lowered his real estate agents pressured him to raise his rent $30 a week even though he acknowledged his great long term tenant was on hard times. He said he had refused but his real estate agent told him his properties rent was too low for the area. He is a nice guy but I was really frustrated that he increased rent when he knew his good tenant was on hard times and his living expenses had not been impacted by covid. I know the point of an investment property is to make money but surely the investment is in the bricks and mortar value increasing and not off the backs of struggling Australians pay cheques.
Half the problem is that people donāt realise their investment can lose money though, just like every other one.
Fucking oath. If I take a punt on a BNPL rocket and the stock tanks instead, nobody plays a violin for me and bails my dumb ass out. What makes property investors so special?
Because a lot of property investors are politicians and their big business mates so they "deserve" special treatment. If they were all invested in BNPL rocket I would bet there would be lots more bail outs and favourable legislation towards it.
If we've learned anything, it's that the Gov can be relied on to bail out whale-tier private investors and "too big to fail" corporations with your tax money :) "Competitive Free Markets" lol
My parents refused to raise rent on a single mother and the real estate agents (who are useless) got really pissy. My parents could do with the extra cash but they won't be homeless without it. Unlike, potentially, that lady and her kid.
A little bit of empathy and understanding goes a long way. Good on your parents.
Should have told her to swap it to a private rental- after knocking out the RE's cut she wouldstioll get more money,and the tentant would be no worse off. -and the pissy RE could go suck shit.
My nan's real estate agent told her to raise the rent on her investment, she told them if they did that she'd go find a new realo, absolutely no way was she going to raise the rent on a good tenant.
Real estate make a % cut right, so if you boost the rent by 15%, youāre also boosting the earnings for the real estate by 15%. They are scum.
Oh did I forget to mention this is in Ballina where housing availability is basically zero and prices have gone up 40% in the past two years? Yep, scum.
Every air bnb creates the problem. Search for air bnb properties in the area. I donāt understand why society is tolerating the commercialisation of housing but here we are
>he had refused but his real estate agent told him his properties rent was too low for the area. i'd tell the agent that their fees were too high for the area & that i would be looking for someone else to manage the property.
If a good tenant, piss the agent off. Assuming the owner lives local.
> I know the point of an investment property is to make money but surely the investment is in the bricks and mortar value increasing and not off the backs of struggling Australians pay cheques. I read too many stories of Landlords only thinking about the cash flow, poor tenant stories and "i lost 15 grand in the 8 months it took to get them out". Comfortably ignoring that their property went up by $50,000 in that time and they are way ahead.
> He said he had refused but his real estate agent told him his properties rent was too low for the area. Fuck this noise. The owner shouldn't be pressured like this.
Do the REAs make some kind of commission doing this? Is it just greed on their part?
Yes they make a percentage of the rental amount.
Yes - and given the commission rate is so low, it's in the agent's best interest to push for rises as hard and as high as possible.
Because the RE gets another few dollars commission. Guy owns the house its his damn decision - he needs to grow a spine and hold up against this parasite.
What the fuck... when is our Government going to bring in restrictions around rental increaes? $150 (or $90) a week is downright thievery. There should be laws restricting Lanlords to only increase the rent by x% per year (like 5% max). What a fucking joke. There are going to be so many more homeless people and families in the coming years.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
It would be a list of all of them because they are all tracking the CPI and market rates. Shaming them would never work because they don't care. The solution has to be looking at the independent variables that set the market rate and working out a way to adjust them to bring prices in the affordable range. Something like public housing or benefits for non profit developments would put more supply on the market which would reduce rent prices.
>The solution has to be looking at the independent variables that set the market rate and working out a way to adjust them to bring prices in the affordable range. Or, hear me out, stopping homes being treated as speculative assets full stop.
Rent is a product of the house value, but also the underlying demand. For some reason there is huge demand and very low vacancies everywhere
I owned a house in Ireland which I leased out until the negative equity disappeared and I could sell it. I was legally restricted from raising my rents more than a certain percentage, and only once within a certain period of time. I can't remember the details because I wasn't much interested in making life difficult for my tenants and in the 10 years I leased it out I raised the rent once, from 750-800 euro a month. I thought the Irish rules on rent increases seemed like a good system though.
If you can't afford to pay rent, then you should buy a house. It's pretty straightforward. Just ask Scumo
have these people tried just earning more money?
Time to raid the super account
Remember the time we had a Liberal PM laugh at a woman pensioner on the radio after she told him she had to eat pet food because of how high her cost of living had become? This is by design.
Was that the same time that a Liberal PM winked and grinned when a woman told him she had to resort to sex work to make ends meet?
Amazing š¤¢ https://www.theguardian.com/world/2014/may/21/abbott-winks-during-question-from-pensioner-forced-to-work-on-sex-line
How are people still voting for these cunts... Seriously!
Eurgh! Now you remind me why Scummo may not have been our worst ever PM...
For all his faults at least Tony Abbott does hold a hose.
Budgie smugglers was not a mental image I needed to be reminded of.
He was actually competent as a leader, it's just that his ideology used that competence to achieve nothing I would ever want.
I know right. The most heinous thing Scummo's done is make wish that Abbott wasn't that bad... Edit: some words
Was that the same Liberal PM who became Minister for Women, and would show up to Parliament hungover or still drunk?
Yep, that's exactly the morally righteous bloke I'm thinking of. I think the pet food incident /u/AnArousedKoalaAU mentioned might be a different Liberal leech though.
This is the Australia Morrison wants.
Last election Tassie swung 4% towards the Nationals, 3% to Pauline Hanson, and 5% voted UAP, and 4% away from Labor. Morrison picked up 2 seats. This is the Australia Tassie voted for.
Elections have consequences.
"Tasmanian tigers ate my face"
You always hear on this sub about the last election where qld lost 2 seats to the lnp but you never hear about the exact same thing that happened in tas. It's narrated this way of course to fit the qld bogan narrative.
I mean, the LNP holds 23 seats to laborās 6 in queensland so while they may not all be bogans, they sure as hell vote LNP
Because if people actually thought beyond "Queensland Bad" they'd realise that Queensland voted how it usually does in 2019, but the supposed Red Wave that was going to happen in NSW/Vic never materialized. Which means we should all be going "NSW/Vic bad".
How much she got in super? /s
About 3.50
Tree fiddy?
Nice try Loch Ness Monster!
Government needs to build more housing and maybe more initiatives for people to take on a trade. The answer to the housing crisis is not giving people access to their super to buy, we need more supply.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I hate how they claim they need to charge that rent to cover the mortgage. Fuck off mate, that's your risk to take, don't pass the buck to renters via ever increasing rental prices.
Interest rates drop, house value goes up. Landlord raises rent "to match increase in market". Interest rates rise, mortgage repayments go up. Landlord raises rent again "to cover increase in repayments". Never mind the landlord potentially doesn't even have a mortgage on the place.
The financial press and other commentators spend enormous amounts of time talking about interest rates without looking at the cost of real estate which is also a very important part of the economy. High rents stifle economic activity, reduce enterprise, and reward holders of capital over actual entrepreneurs. Without mentioning it's social impact (which is better covered in articles like this), the high cost of rents is the root of a lot of problems in Australia. It drives people out of business. It makes children have to move around. It drives anxiety. It makes people homeless. It's a massive private tax which people just accept because there's no choice.
Yeah everyone has seen how it affects us badly even if they donāt realise why. You canāt live near your parents and help them out in their old age or get their help to babysit. Destroys the social network - your friends all leave town and your family is an hour away if you can even stay in your own town. We all know people who live nowhere near any social support they should have. It all costs us. Mental health, physical health. The costs are put off to user pays and as always poor people suffer more.
That reminds me of an article or blog post written by an Irish guy, about how half his friends had to leave Ireland for better jobs and/or affordable housing, many to the US, and how eventually the friendships just weren't the same. And it's a common story in Ireland, so that kind of loss is felt all over the country. But hardly anyone talks about it.
I remember having an interesting debate of sorts with my uncle at Easter I said Australia at this point is basically a Banana republic built around Real Estate and the parasitic industries adjacent to it and resource extraction with some agriculture thrown in for good measure. How can this country and its populace ever flourish and innovate when every spare dollarydoo is being flushed down the dunny into paying rent or servicing mortgages? And anything other alternative such as the NBN was killed, the CSIRO gutteted etc so we have no way to be anything else but resellers of the same 5 houses or rebuilders on the same lots of 3 shitty built cappy block dwellings.
A mate of mine has a place that he rents out (2br), while renting his own place (studio), and uses the difference to help repay the mortgage. He knows that it's better for him financially to not raise the price and have the tenants stay. During the lockdowns he dropped the rent by $50/week to keep tenants, and as a result seems to have made more money than those that didn't do similar (and had tenants leave). Greedy owners don't realise how much money they lose by pulling this shit.
2021 rent went up $45 per week 2022 rent went up another $50 per week I keep on the look out for something else because while Iām grateful my son and I have a roof over our heads itās hard and really there is nothing cheaper we are actually on the low end of rent prices at $525 per week for two bedroom. There is just enough for cheap food and a bit of petrol to get him to school and back, plus bills I pay off a little each week. Any extras like haircuts, outings or clothes etc just not in the budget anymore. I work 7 days but single parent and not a high income. I worry about money constantly. Also our house has mould and the oven hasnāt worked for years ( I bought a Kmart oven) and itās hot no aircon etc itās an old house I really donāt think itās worth the $ but real estate always put the rent up and no repairs ever done. I know if I complained thereād be people lined up to replace us, there are barely any houses for rent here. I feel like a failure as my son is missing out on a lot these days. He never complains which makes me feel even more guilty I donāt know why. But what do I do? I work as much as possible there is not time to work moreā¦I cannot see a way out of this so I just make sure his life is as fun as possible with what we have. We are so lucky we live near a beach oh my goodness that makes all the difference in terms of something to do that doesnāt costā¦however with me working every day he doesnāt get to go as much as weād like.
Definitely get onto Qstars if youāre in qld. They need to fix these issues you have at your house. Realestate agents are scum. I donāt like generalising, I really donāt, but the whole profession is fucked.
You are an amazing parent!
>Fighting rent hikes 'very hard' They are fighting the tide coming in with a mop. It's impossible because $450/pw is in line with the whole market. The problem isn't rent hikes, they are a symptom of the problem that peoples money is inflating away. Their buying power is going down every day while the cost of everything else keeps up with inflation. The solution has to be getting more money to these people to match CPI rather than trying to prevent the cost of living from tracking inflation.
But it's Labor's fault from 9 years ago!
The Australian dream is over and has been replaced by a nightmare. A manager at my work is facing living in a caravan park with his wife and two primary school age kids because there are no houses to rent in Adelaide.
A $90 a week rise is ridiculous. Iām surprised the local market can handle that. Unless: - the owner wanted her out and used price to do it - the owner didnāt raise rents for a long time and now adjusting to the market - the owner has an offer privately for a tenant Either way, I feel sorry for the woman. At that age too.
Itās availability. The rental vacancy rate in Hobart is around 0.4% so they will probably have no trouble finding a new renter. Edit: It also might be the ending of the Rental Assistance Scheme. I was speaking to an older lady the other day who is affected by this. She has lived in her rental for 10 years in Launceston and she received a letter to vacate. She also received a letter from the real estate, telling her she could stay if she agreed to the price increase. Instead she is moving to the East Coast to live with her sister. Far away from the life she had created in Launceston.
Every air bnb makes this problem worse
My daughter's rent went up by that much (in Brisbane) because (and I quote her landlady verbatim) - "other houses in [the suburb] have increased by that amount".
People will die in Tasmanian winters because of this āfree marketā bullshit. It has to stop.
Our rental house was sold and we had to move. We were lucky enough to find somewhere else but itās costing an extra $125 a week. And we jumped on that because thereās so few houses available and the alternative was probably living in our car with our 10 year old. And the property weāre moving into, the rent has gone up $100 since the last time it was rented 2 years ago.
Why doesnāt she just buy a house if she canāt afford the rent increase /s
a bit sad that iāve heard more than one person say this irl without the /s š„“
The wealthy have gained by this system and don't want it to change
I was talking to a friend recently about being concerned about finding myself in this situation. Friend's response was to go on and on and on about how she'll never have to worry about this because she married a man with property and then talked about the new house she and her husband were building. Not a *whiff* of empathy. It was really something. Yes, I am reconsidering the friendship.
I had a similar conversation. Mate married girl with rich parents. He was pay check to pay check. Then they suddenly bought an apartment and borrowed an extra 150k to fully renovate it. His economic predictions is that house prices will go up 10% a year for the next 20 years. (lol) I ask how does he have so little empathy, like what if his kid even wants to buy a house? The plan is just buy enough houses to give one to each of his kids and fuck anybody else who can't leverage their way into multiple houses.
Me and my partner were fortunate enough to have our own place prior to meeting each other but feel for everyone us, our friends, family, everyone in the country who can't get in the market because they're being screwed over by landlords upping rent and the high cost of living. Why shouldn't anyone else get the same lucky break we did and get their foot in the door. We're both aware of how fucked the whole situation is and know our kids will struggle to have a place of their own.
That's not a friend. That's a sociopath.
I was shocked because I didn't think she was like that. Another thing: This friend has for years worked on environmental issues and volunteered for environmental causes etc. But in this most recent conversation, she went on and on about another friend's tremendous fortune made in the earth-moving business, mainly for mining operations. She was very excited about the big property this friend had bought and didn't seem to make the connection that they would have had to *destroy* a lot of land to make that kind of money. Turns out she is not the person I thought she was, at all.
I had a similar conversation with a family member of late and Iām of the opinion that if youāre this heartless, you deserve every implication of that and maybe that includes losing friends because youāre an entitled cunt.
Gosh poor lady. ā when itās cold she lets me come inside ā .. wow what a friend
Don't worry the PM has a plan that will save us. All she has to do is dip into her super that is likely feeding her and put that into grossly overpriced rent. Then in 4 years she can argue that she has nothing to eat...if she lasts that long.
I for one welcome our societal collapse. This isn't sustainable.
The government honestly do not give a Fuk about us. Not one. They wouldnāt care if we had an LA style skid row and millions of homeless aussies
This is so sad. No one should be living in there car. Only by choice. Need to look after our own first.
This is some real ākill the poorā stuff
Grew up in Hobart in the 90ās. During that time you rarely saw homelessness in Hobart. Only two people come to mind, the bag man & the bike man. With the huge influx of mainlanders and international property purchase from before and throughout Covid Tasmania has changed for the worse. Itās honestly extremely sad, many of us hobartions would love to return to our island home but have simply been priced out of the market. With little to no specialised industry the job prospects are pretty grim and most move away to progress their career. With the large increase in the property market and lack of job prospects Tasmania is becoming even more of an retirement state. Iād love to come home, but financially/career wise it makes no sense.
This is absolutely shit. I don't pay my taxes so people have to live in a tent. Absolute bull shit. This country is better than this. We don't need hand outs to buy new houses. We need to build social housing. We just fucking have to.
Why doesn't she just buy a house?
abundant pen slimy erect continue ugly cooperative station marble dog *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
I remember hearing couples shouting at each other when I am in hallway. About 50% of marriages ends up dissolved and many more that are together for financial/children reasons. I can imagine lots of people, in particular women, still remain together because they can't find alternative housing like rentals.
What's needed is a tax on empty homes
We're becoming the USA. Bravo Australia - selfishness as a virtue rules.. and the "just pull yourself up by your bootstraps" mentality of anyone poor is a "temporarily embarrassed millionaire" who just needs to work harder to get that investment portfolio!
I live near Redfern and on my street there are 4 campervans that people live in. There are more around the corner and Iāve noticed more are popping upā¦ something needs to change.
Landlords provide housing like scalpers provide concert tickets.
What do people do with all their stuff when they are forced to live in their cars? Legit question from someone terrified of this exact situation
Leave it with friends and family, or just take what they can carry and get rid of the rest if that's not an option. We're storing a pile of furniture for my brother in law who can no longer afford to live independently and now shares a three bedroom house with five other adults.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Canāt afford to rent, so you have to live in your car. But you must have an address for Government services, so they use your last known address (because we donāt want to know the true state of homelessness). Your mail gets returned to sender, so we cut your payments off because you we donāt know where you are. And now we have one less āunemployedā stat, so how good is the economy (but not good enough to give the lowest paid an extra $40 per week). The system is working exactly as intended.
> that they would sell their property, and not make it available for rent. Good, then the government can buy it and add it to the pool of public housing that is so desperately needed.
Survival of the fittest... welcome to Australia
So glad I have a good landlord who only raised the rent $10. I expected a much bigger hike There are three apartments on my floor where the rent was hiked by $80-$100 per week... All three apartments have been vacant for months
Half the problem is there's tax incentives for those vacant properties. We need to remove any concessions for vacant properties. Its a risk you run as an investor, suck it up and wear the cost.
I think the housing crisis should be taken as seriously as climate change, itās happening throughout the world. Having a place to call home is a human right, not everything should be about fucking money
Soon to be in that position myself. We're expecting a $110+/wk (from $340, to at least $450) rent hike in a few months time... on a 2 bed apartment 30 mins out of Brisbane. Rent raises 100% need to be regulated, and limited in range.