To read all the blogs of this selected group about rentals click on this link, http://menfranco.blogspot.com,
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I belive that past politicians are to blame for today affordable rental problems, and they need to fix it, asap to go back to normal.
I believe that in the future they will build properties for rent, that may look like this photo above. You see, in Australia most people preffer to live in a stand alone house, but if they cannot afford to buy or rent one, they may prefer something like these units above, instead of living in a skyscraper.
NOTE, ARTICLE No: 16.
This article is the sixteenth 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 social 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. So, the politicians need to pass laws that help the private sector run their rental sevices, and definitly not descriminate against them, as if it is their enemy.
Australia rental problems review.
Welcome to our article,
I believe that I have written sixteen articles about the rental problem
that we have in Australia, and they can be found at this blogger web address, http://menfranco.blogspot.com,
Now, it is time to review what we have said, and if it is possible write
a shorter version, of what we believe may need to be done to fix this rental
problem.
We agree that the main problem is that there is a shortage of properties
for rent, so, we must ask ourselves what has caused this shortage, because in a
country like Australia that runs on the capitalist system, where everybody can
do what they like, and everything runs on supply and demand, these things
should not happen, unless there is a reason why, this free will of the people
has stopped working. So, to fix this rental problem, we must first fix what has
caused it, and I happen to know one of the main reasons. Now what I am going to
say next is not going to be what people would like to hear, because it is not
going to spare anyone, but it is the truth, and it need to be told.
Anyhow, one of the reasons why this is happening, it is because the
politicians want us to believe what is convenient to them, they want us to
believe that it is the fault of the landlords that are charging too much rent,
when it is the politicians’ fault, because they have too many levies on rental
properties. You see, the landlords are trying to run a service to the
community, the best way they can, and if you run a service, you need to earn
some money, otherwise you are forced to close it down. Now, not all landlords
are the same, and there are some that will continue to run their rental
service, if they do not lose money, this section is formed from the mums and
dads, but here is where the government has fouled it up, with their unjust
assets test, that discriminate against these small investors, and other people
in the community as well.
Now let me explain in the simplest way possible. If you have a rental property
valued at 1,000,000 dollars, you are cut off from the government pension, and
other social benefit that other people receive free from the government, so, it
is foolish to keep the property, and you are better off selling it. I believe
that this also applies to sickness benefit and jobseekers.
Anyhow, what I want to point out here is that, if the government wants
the mums and dads’ small investors help with rentals, then the government must
abolish the ASSETS TEST, or reduce it to an acceptable level. They cannot go on
cutting off the pension 3 dollars per thousand, when that rental property can
earn net only ONE dollar per thousand. I hope I have explained myself clear
enough.
If the politicians do not want to understand this, then it will be a lot
harder to fix the rental problems in Australia, and I dare say that it cannot
be fixed, or a lot harder to fix, unless they fix the assets test. So that the
mums and dads are not discriminated and hated, even when they are losing money.
Now let us look from another point of view.
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Looking for other reasons.
Here we want to understand the reason why this has happened and try to
fix it. I know that we may have different views of this situation, because we
start by looking from the point of view that interests us most, therefore there
are many different points of view.
Anyhow, after reviewing what we have said, I still believe that there is
not enough money in rentals, because if there was enough money, this shortage
of rental properties would not exist. There are a couple of things that we need
to talk about, one is the price of properties that are going up too quickly,
and it is causing problems, because if the properties cost more, then the
owners of those properties must charge more rent, otherwise they will be
renting them at a loss. You see, if we look at today prices of properties, and
there are many houses that sell for a million dollars, you can rent that
property, and if you are lucky you can earn net about $20,000 per year, but it is more likely that you will earn net
only $10,000 which is about 1% of the property value, and not enough to run a
business, and there are many other problems, especially for the pensioners,
that are losing so much money.
- Because if you are government pensioner, you can lose your entire
pension, which today is,
- Single: $1,064.00 per
fortnight (approximately $27,664 per year)
- Couple (each): $802.00
per fortnight (approximately $20,852 per year)
- Couple (combined): $1,604.00
per fortnight (approximately $41,704 per year)
So, what is the use to have a property for rent, when you lose so much
money?
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Australia needs to fix the rental problem or perish.
Well, not really perish, but it will take a very long time, and a lot
more money to fix it. Anyhow, it looks like that to solve the rental problem,
the Australian government must first fix the pensioner problem, because it is
the pensioners group of small investors, that can help maintain the balance of
rental affordability. You see, this is a very large group of people, they are
the mums and dads and a few others, that could continue to stay on the rental
market, if they do not lose money, but the government treats them as if they
are rich people and wants to kill the heroes of the rental market. Any other
group of investors will not invest in rental properties, because there is not
enough money.
From what is happening, we can say that there has not been enough money
in renting properties for a while, if there was money there would be many more
properties for rent, the capitalist system does not fail when there is enough
money around. So, it would be wise for the government in charge, to help the
have not, by giving them more rent assistance, and at the same time amend the
ASSETS TEST to an acceptable level, so that the mums and dads’ small investors,
do not lose money, and can stay on the rental market.
Well, this is how I see the rental situation, and if my suggestion is
taken seriously, then the rental situation will slowly improve.
In our views, this is what needs to be done to bring a reasonable
balance to this rental problem and the pensioners problem.
I could say more, but this article is long enough, so, see you next time.
To see more click on this link, Australia Rental Problems Review.
NOTE. This article above, is the link to the following article, (still to decide the name). This article is also the sixteenth 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,
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