The state of the economy at the street level

sptrawler · 8 February 2023

The only reason we have the landlord situation, is because all Governments for the past 40 years have deligated the responsibility for social housing to the private sector, by incentives.
When I came to Australia as a kid in primary school in the 1960's, most people lived in State housing commission homes.
Now the private sector has to pick up social conscience of the Govt, what a scam. LOL

basilio · 8 February 2023

sptrawler said:
When I came to Australia as a kid in primary school in the 1960's, most people lived in State housing commission homes.

Interesting observation. One of the most important issues around social support in the 50-60's was establishing affordable housing. State Governments decided that having available affordable public housing was an attraction for workers and industry. It also provided a strong base for family security.

That didn't mean family success was guaranteed of course. But it was a good practical start.

Ain't the case now of course. Social housing has bee through the washing machines so many times it has shrunk to a vestige of its original significance.

JohnDe · 8 February 2023

SirRumpole said:
I really think it's time to bring in some form of rent control, temporarily at least.

Stuff the landlords for a while the homeless thing is getting out of hand.

Yes, costs of servicing a mortgage have gone up, but landlords have had it pretty good for a while, time to give something back.

againsthegrain · 8 February 2023

JohnDe said:
View attachment 152788

well we do bow down to China...

SirRumpole · 8 February 2023

sptrawler said:
The only reason we have the landlord situation, is because all Governments for the past 40 years have deligated the responsibility for social housing to the private sector, by incentives.
When I came to Australia as a kid in primary school in the 1960's, most people lived in State housing commission homes.
Now the private sector has to pick up social conscience of the Govt, what a scam. LOL

I suppose we could do the Arden trick, promise 100,000 homes and build 100.

basilio · 8 February 2023

Something to consider.

1) The Chinese government has decided that university students studying in Australia have to come back to do face to face teaching. As a result hundreds of thousands of students will have to come back find accommodation and complete their degrees.

2)These students will compete in a housing market that is already on fire.

3) Tens of thousands of home owners with mortgages are trying to square the circle as interest rate rises overtale income.

Solution.

Home owners offer students homestay opportunities. $350 a week tax free. Takes a student out of the expensaive renatl market. Win/Win.

sptrawler · 8 February 2023

SirRumpole said:
I suppose we could do the Arden trick, promise 100,000 homes and build 100.

She wouldnt be the first pollie, that promises the world and delivers maccas.
A few are lining up at the moment IMO.

sptrawler · 8 February 2023

basilio said:
Something to consider.

1) The Chinese government has decided that university students studying in Australia have to come back to do face to face teaching. As a result hundreds of thousands of students will have to come back find accommodation and complete their degrees.

2)These students will compete in a housing market that is already on fire.

3) Tens of thousands of home owners with mortgages are trying to square the circle as interest rate rises overtale income.

Solution.

Home owners offer students homestay opportunities. $350 a week tax free. Takes a student out of the expensaive renatl market. Win/Win.

Insn't that a tax payer funded fringe benefit tax break for the Universities?

SirRumpole · 8 February 2023

wayneL said:
That may invoke the law of unintended consequences. I've got no love for landlords as a group, but I think they're the bit player in this saga.

It's the policies of successive governments that have led us here. If you invoke authoritarian control over landlords, you may just find that the supply of housing for rent even worse. IMNTBCHO

Of course, rubbish policies have got us here, question is what to do now.

The current laws favour the landlords, maybe the pendulum needs to swing the other way.

If rent controls are applied (they don't need to be draconian - which is subjective anyway) then maybe a few landlords will think it's not worth the trouble and put their houses on the market which might increase the supply for owner occupiers.

Dona Ferentes · 8 February 2023

SirRumpole said:
I suppose we could do the Arden trick, promise 100,000 homes and build 100.

No child will live in poverty

againsthegrain · 8 February 2023

SirRumpole said:
Of course, rubbish policies have got us here, question is what to do now.

The current laws favour the landlords, maybe the pendulum needs to swing the other way.

If rent controls are applied (they don't need to be draconian - which is subjective anyway) then maybe a few landlords will think it's not worth the trouble and put their houses on the market which might increase the supply for owner occupiers.

Either that or people stop paying rent and then the govt is fkd from both sides

https://www.news.com.au/finance/real-estate/renting/australian-landlord-blasted-for-rant-about-tenants-not-paying-rent/news-story/52b8b23169863a5c233c5470e3bf82a6

Dona Ferentes · 8 February 2023

againsthegrain said:
Either that or people stop paying rent ...

Having witnessed a non compliant tenant fail to pay rent (leased car went months prior) and then see the process culminating in the Sheriff effecting a forced eviction, it's not pretty. Landlord seriously out of pocket and former tenant seriously homeless and prospects diminished.

In some ways, the social contract is fraying. Most people will try and stay engaged. Watch out if employment levels drop.

sptrawler · 8 February 2023

SirRumpole said:
Of course, rubbish policies have got us here, question is what to do now.

The current laws favour the landlords, maybe the pendulum needs to swing the other way.

If rent controls are applied (they don't need to be draconian - which is subjective anyway) then maybe a few landlords will think it's not worth the trouble and put their houses on the market which might increase the supply for owner occupiers.

But who supplies the social housing? The Government doesnt want to, even though it would create jobs for Australian kids, no it's much easier to just bring in more skilled migrants.
They will pay enough tax, to pay for the unemployed kids and the pollies can rent a house to them both. Lol

SirRumpole · 8 February 2023

sptrawler said:
But who supplies tbe social housing? The Gkvernment doesnt want to, even though it would create jobs for Australian kids, no it's much easier to just bring in more skilled migrants.
They will pay enough tax, to pay for the unemployed kids and the pollies can rent a house to them both. Lol

I think I mentioned a while back that there should be more apartments, to spread out the cost of land over a greater number of tenants. The government has to do it really, commercial operators won't deal with low income tenants, they are after the big bucks.

You have to stop them turning into ghettos though. They should be inspected regularly and any sign of drugs and the tenants are out. Any damage to the apartment and they are out.

qldfrog · 8 February 2023

SirRumpole said:
I really think it's time to bring in some form of rent control, temporarily at least.

Stuff the landlords for a while the homeless thing is getting out of hand.

Yes, costs of servicing a mortgage have gone up, but landlords have had it pretty good for a while, time to give something back.

Feel free to buy an IP and rent it SR.
I know I never got return above TD rate on any investment property I ever had even with no loan.
You will never catch me again buying uip.
Any money you make if ever is just the capital gain.
In China, most investors buy and do not rent.keep unit spotless.
That is probably the way to go here if you still want to buy in RE

qldfrog · 8 February 2023

SirRumpole said:
I think I mentioned a while back that there should be more apartments, to spread out the cost of land over a greater number of tenants. The government has to do it really, commercial operators won't deal with low income tenants, they are after the big bucks.

You have to stop them turning into ghettos though. They should be inspected regularly and any sign of drugs and the tenants are out. Any damage to the apartment and they are out.

SirRumpole said:
who are you to remove the freedom of these victims, what next, forbid alcohol sale in the NT!

JohnDe · 8 February 2023

SirRumpole said:
I really think it's time to bring in some form of rent control, temporarily at least.

Stuff the landlords for a while the homeless thing is getting out of hand.

Yes, costs of servicing a mortgage have gone up, but landlords have had it pretty good for a while, time to give something back.

In parts of Europe their superannuation companies build apartments & long term rent them, people can rent their whole life without fear of being evicted because the owner wants to sell. This is what our governments should encourage, but the problem is that the return on investment isn’t has high as other investments, and we don’t like that. We need a change of attitude and understanding when it comes to rental investment & superannuation.

sptrawler · 8 February 2023

JohnDe said:
In parts of Europe their superannuation companies build apartments & long term rent them, people can rent their whole life without fear of being evicted because the owner wants to sell. This is what our governments should encourage, but the problem is that the return on investment isn’t has high as other investments, and we don’t like that. We need a change of attitude and understanding when it comes to rental investment & superannuation.

In Singapore a not too dissimilar system is run by the Government.
Here both sides of politics actively promotes the private sector running the social housing, by providing incentives, the only problem is they have to look like they are concerned about the low income tenants.

Knobby22 · 8 February 2023

sptrawler said:
In Singapore a not too dissimilar system is run by the Government.
Here both sides of politics actively promotes the private sector running the social housing, by providing incentives, the only problem is they have to look like they are concerned about the low income tenants.

Yes, we have the private/public balance wrong plus we don't incentivise new developments compared to existing properties very well.

Nothing will change till the young people develop politically.

My daughter is looking to leave home and go to a share house but she says the one she went for had 60 applications for a single room so she hasn't had any luck so far.

sptrawler · 8 February 2023

Knobby22 said:
Yes, we have the private/public balance wrong plus we don't incentivise new developments compared to existing properties very well.

Nothing will change till the young people develop politically.

My daughter is looking to leave home and go to a share house but she says the one she went for had 60 applications for a single room so she hasn't had any luck so far.

I dont know what job or skill set she has, but if she can work where there is maximum pay and build her way up the property ladder, IMO it is a better way than hoping to catch up with a red hot property area.
Unless a young person is extremely gifted, I cant see how they can expect to successfully climb the Sydney/Melbourne ladder without help.

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