To read all the blogs of this selected group about rentals click on this link, http://menfranco.blogspot.com,
-----------------
I belive that past politicians are to blame for today affordable rental problems, and they need to fix it, to go back to normal.
NOTE, ARTICLE No: 13.
This article is the thirteenth article of a group of articles, about Australia housing problems and its cause and remedy discussions. We are reposting some articles to show you, what we believe is the cause of the rental shortage in Australia. You see, the Australian Social Security System fails to help the farmers, because of the assets test, and fails and punishes the small rental investors, because of the ASSETS TEST, that is the only reason I can see, why today there are not enough rental properties on the market. So, to solve the housing problem, the politicians need to abolish or reset the ASSETS TEST at least to the same level or below, what people can lose from their pensions or other benefits. Also, to solve the housing problem, the politicians must find grounds to work together with the private sector, and definitely not against the private sector. But today, from what they are doing, they seem to say that the private sector is their enemy, when the private sector is only running a rental service to the community.
Welcome
to our article,
Today I want to point out that one of the
reasons why rents are high, it is because any type of housing costs a lot to
build, therefore, when they are new they cost a lot to rent. But what about the older
houses. Here I must say that existing houses and units cost a lot more than
they should, perhaps the real estate agents are trying too hard to push the
price up, and one day the prices may come down, or they may stop going up for a
few years. So, those buyers that want to buy at all costs, better beware,
because this can be coming sooner than you think.
Anyhow, there are not enough houses being
bult, and I wonder why they cannot be built and sold any cheaper. In the past
whenever there was a shortage and the price of housing went up, they soon built
more houses, and the price would return to normal. But today this is not
happening, some people say that there are not enough tradesmen to build new
houses, and not enough young people that want to be tradies and work on
buildings. Anyhow, this is only one of the reasons, because there are many
other reasons, why there are not enough rental properties on the market.
I believe that the reason why there are not
enough properties, it is because the mum and dads, that are the greatest number
of small investors, have been placed in a disadvantaged position and losing
money, and at the same time they are being discriminated, as if it is their
fault. When it is the fault of the government authorities that charge high
levies, on affordable rental properties. Anyhow, once these small investors
realize that they are overcharged and discriminated, they will stop investing
in rental properties, and they might even sell them, because they are losing
money. And this is another reason why there are not enough rental properties.
-------------------------------
Which charges and by-laws affect the rental
market most.
So, let us talk about which charges and by
laws affect the rental market most in a negative way; and that is the reason
why, it is not easy to fix, unless these laws are modified. I believe that
there are at least two things that must be changed, for the rental market to be
able to go back to normal, and this must be done soon. One is the assets test,
and the other thing that hurts most is the land tax, that give the landlords
nothing at all, but charge lots of money, just because you own a property, most
of these properties are rental properties, therefore, the owners must charge
more rent to pay for the lant tax.
Anyhow, we are continuing to study the
Australian rental situation, but it is becoming clear that the rental market
cannot go back to normal, because of these laws that charge lots of money, and
put pressure on the landlords, who cannot do anything except charge more rent
to pay for those levies.
So, this rental problem cannot be solved,
unless the present governments change these negative laws, and makes the rental
market cheaper to run, and it needs also to change or abolish the ASSETS TEST
on affordable rental properties. So that those people that are on the rental
market, like the pensioners, the disabled people, the jobseekers, and other
people that during their lives need government help. When they apply for help,
they cannot have it, because the assets test disqualifies them, even when they
cannot earn money, from their rental properties. So, they may be forced to
sell, and another rental property disappears from the rental market.
Now, I know that you start hating me, because
you think that it is not possible that people that own properties need
government help, but they do. You see the small investors, that have only a
property for rent and no other income or funds, they need the government
pension to survive, and this can be a real problem, because of the assets test,
that discriminates against the property owners.
Anyhow, to understand what I am saying, you
must imagine what is really happening in the rental market, because there is
not enough money left, after the owner pays the levies on that property, and
they may earn only one or two per cent of the value of the property, and most
of them may decide to sell the property. So, we can say that this is the
reasons, why today there are less properties for rent.
You see, the ASSETS TEST, is
set in a way that pretends that the owners can earn about 8% of the property
value, when in most case they can earn only 2% of the property value, or even less. So, if they
want more rental properties on the market, the government must abolish the
ASSETS TEST on affordable rental properties.
Here I know that most of you
are not convinced about this, so, I need to write a few examples, and step by
step explain how I have reached this conclusion, but this blog is becoming too
long. So, I will write another blog or two if necessary to explain what I am
saying. Meanwhile remember that the government Social Security System must be
equal for everybody, but it is not equal, and this is causing problems.
Anyhow, we will continue with our next article, Housing Problems causes in Australia.
To see more click on this link, Australia Housing Problems, Two.
See you next time.
--------------------------
NOTE. This article above, is the link to the following article, Australia housing problems two. This article is also the thirteenth article of a group of articles that we want to publish. The aim of these articles is to show you that, the Australian governments can fix these existing problems, if they run a better Social Security System that fails to help those that need their help. And we believe that it must be equal for everyone. The greatest problem is created by the assets test anomalies, so, the ASSETS TEST must be abolished or adjusted, so that those anomalies are eliminated. Because it is not fair to the pensioners, and this is one of the reasons why, there are not enough rental properties on the market, since the pensioners, are forced to sell out to receive their pension. Anyhow, here the greatest problem is the politicians that do not want to see it that way, and they make laws that would stop anybody to invest in rental properties, when they need the private sector to invest in the rental market, so, the politicians need to make laws that helps the private sector invest in rental properties. So, let me explain.
For me there are three main things that the government can do, to come out of this rental crisis: give more rent assistance to the low income earners, abolish the assets test on affordable rental properties and low other levies, so that the small investors can keep renting at affordable price, and stop foreign ownership on rental properties, that is pushing real estate prices up, and the rental market must follow to go up, because the properties cost more.
Some politician believe that the government should build, affordable rental units to solve this rental crisis, but for the government, to build an infinite number of affordable rental units, is not practical, because it will cost the tax payers several times more than helping the present rental set up, as we have suggested above.
To read all the blogs of this selected group click on this link, http://menfranco.blogspot.com,
----------------------------------
No comments:
Post a Comment