Australia rental problems.

WELCOME TO OUR GENERAL BLOG YOU ARE INVITED. Today we are reposting some of those articles, that in a way can link to our main message about housing, where we will talk about the housing problems in Australia, the Social Security System, and the ASSETS TEST that can prevent the Social Security to be equal for everyone. And I believe that the assets test is the main problem, why today there are not enough rental properties on the market. 

This article can also be found at this Hub Pages link, Australia Rental Problems Can Be Solved.

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. 

This is a typical block of units in Brisbane suburbs, and today we need more to satisfy the rental market, these units are self-contained, and can be owner occupied or for rent. Blocks of units like these are run from a body corporate, that charges a levy to each owner for the property in common. The owners must also pay, the council rates, the urban utility levy, and other levies, so, they cost a lot to run.  

 

NOTE, ARTICLE No: 9. 

This article is the nineth 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. 

Australia Rental Problems Can Be Solved.

Welcome to our article, Australia Rental Problems Can Be Solved.

Today, the people that are renting, complain that they cannot afford to pay the rent, and the landlords complain that it is hard to keep the rental properties going, because there is not enough money in this business anymore, and some of them have given up renting, because there are too many problems and not enough money.  So, this is becoming a real problem. What people do not realize is, that the Australian rental shortage problem can be solved, if we do what needs to be done, after we pinpoint the reasons, why this is happening. Because in the past, if there was any rental shortage, it was not as bad as it is now. But I believe that the people in charge do not know what to do, or, they do not want to know what to do, because what needs to be done may favour the small investor, which is the middle class that nobody wants to know about, since they can look after themselves, if they are in a plain field, so, nobody cares about them, even though they are the people that make the economy work in a balanced way.

Anyhow, let us talk about the rental problem. These days, we can hear every day in the news, that there are a lot of people in Australia that cannot afford to pay their rent or buy a house or unit to live in. People believe that in the past it was easier to buy or rent, and I believe it myself that it was easier. So, in this article, we are going to discuss what could be the reasons, and if there are ways to improve the situation. To do that we need to compare what is different today, and if there are laws or by laws that make the rental properties more expensive to run, and therefore, it is harder for the property owners to rent their properties at a lower affordable price.  

Now what I am writing here is just common sense, that anyone should be able to work out. So, I wonder why the smart politician have not picked it up, what they are doing wrong, because I can see a few things myself that could make the rental situation better. In our previous articles, we have pointed out that, this rental shortage may have been caused by the assets test change, that has caused the small investors to sell out and leave the rental market. 

Anyhow, I believe that to restore the rental affordability issue, it can be easier than most people think, it all depends, if the politicians do what they must do the right way, and they must not try to impress people just to gain a few votes, like what they are doing now, they want to tell the owner, that they cannot increase the rent of their properties, when for about ten years or more, the rent have not gone up like everything else, but the charges to run their property has. So, today the owners are forced to pass the entire charge increase, that they are asked to pay from the authorities in charge, and some of them ask the owners to pay, just because they need the money. We will say something about this hereunder.   

 

The rental affordability issues. 

 Having said that, now let us start discussing this affordability issues. We believe that in the past properties were more affordable, so, we must look at what has changed to understand the reasons. This is not easy to do since the Australian economy is a capitalist economy and free to run its own way. So, most prices are automatically set, from the supply and demand market, when there are not enough properties on the market the price will go up. When the prices go up, more properties will be built and come on the market, so, the market will go down, and it is self-balancing, and sometimes it is good, at other times it is not.

Anyhow, for me that I have followed the rental market for a while, I believe that in the past it was easier to rent or buy, but the greedy politicians have changed the laws, so, there are a lot more expenses today than in the past , in some cases 50% of the rent covers the bylaws charges levied on that property, therefore some property owners cannot make much money from their rental investment, for this reason people that were going to invest in properties, they do not see enough money coming in and they do not invest in properties. People need an incentive to invest their money on rental properties, or at least know that they are not going to lose their money if they buy rental properties. 

 Anyhow, it is a well-known fact that people with a lot of money, knowing that the rental market is risky, they keep away from it, so, it is up to the small investor, with limited money and struggling that invest in rental accommodations, but even these people are kept back from the never ending expenses, that the authorities levy on their property, not only that, but today while I am writing this blog, some politicians in Canberra are talking about limiting the rent increase that the properties’ owners can charge. Okay, it sounds good, and it might work well for the have not. But if they pass this law, then the few rental property owners left, may have to sell or close their rental properties and there will be less properties for rent.

I believe that the government needs to think what they are doing, because if they want cheaper rent, then their levies on properties must come down a lot, it is outrageous that in some case, a rented house, may only earn one per cent of its value in a year, when everybody else make a lot more. Anyhow, there is very little money to be made in rental properties, but there are a lot of problems to run them. So, the few investors that are left wonder, if they will continue to stay on the market or sell out, if they can find a buyer. But it is very hard to find anyone because rental properties do not earn enough money to run them at a profit.

 

Some discussions on rental issues.  

Anyhow, I have called this article, Australia rental problems can be solved, so, in a way a have promised my readers that I can suggest a way how to solve it, so, now I must come up with a theory, how the rental issues can be solved.

I believe that there are at least two choices, one, all the governments involved in rentals must chose, whether to build lots of affordable rentals themselves, and run them at no profit or at a loss, and this can cost several billions and may keep the government budget in the red for a long time.

The other way is that the government authorities charge less levies on rental properties and do other things that keeps the small investors interested in rental properties. So, let me tell you a couple of things that come to my mind.

Here I am talking about the small investors only, because I do not care if the rich people lose money. Anyhow, one of the charges that hurts most small investors in Queensland is the land tax. The land tax is a levy from the Queensland Government, these days, they charge $1.7 per thousand of the land value. So, a property that is on a block of land of ONE MILLION, will be charged, about SEVENTEEN THOUSAND DOLLAS, per year, then there are other charges from other local authorities. Now, you can see why rental properties are not worth keeping. The government may argue that they need the money, but that is not helping the rental market, and it is driving away the few small investors left.

I believe that the government authorities do not care for the small investors, or anybody that owns a property, and they are treated in a way that makes me think they are discriminated, when they deserve better, to prove that I am pasting an article I fount on the internet. (And I quote).

Public Trustee leaves pensioner without money for food and takes 40 per cent of his income.

There's growing concern about the treatment of some of the country's most vulnerable people by a government body that manages their finances. In Western Australia, the public trustee charges higher fees to people with assets, even if they have little cash to spare. (End of quote).

This behaviour of this government body above, it makes me think that most government bodies are like that. So, the small investor, would be better off, if during his life, he would have spent his money to enjoy himself, instead of saving to buy a property investment, that in the end make life harder instead of better.

  

 How we can solve these rental issues. 

Now let me go back to the rental problem. Apart what we have said above, the other thing that comes to my mind is that years ago, the assets test for pensioners sickness benefit and other, was 1.5 dollars per thousand, but today it is three dollars per thousand, so, a pensioner is deemed to earn $7.5 per cent, on their rental property value, when in fact, he may earn only one per cent. You see why I think that the small investor is in a disadvantaged position and is being discriminated. 

My view here is this. If the authorities want to save Australia from a huge debit by building lots of affordable rental accommodations, they can choose to abolish the assets test, not only on the house you are living in, but also on the first rental house or unit that is rented, or on the market for rent. This will keep some of the small investors in the rental market, and the problem is half solved. Anyhow, this is my view how the rental problem can be solved.

What I am suggesting here, is a possible way how to solve the rental problem for good, and will save the governments billions of dollars, because they may need to build fewer rental properties themselves.

You may say that what I have suggested will cost the government money. I know it will, but it will be a lot less than if they build all the affordable rental themselves. 

There is more to say, so, see you  next time in, Housing Disaster in Australia and What Can Be Done.

To see more click on this link, Australia Rental Problems Can Be Solved. 

See you soon.   

------------------------------- 

NOTE. This article above, is the link to the following article, Housing disaster in Australia and what can be done. This article is also the nineth 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,

---------------------------------- 

----------------------------------------  

Assets test and pension cuts

WELCOME TO OUR GENERAL BLOG YOU ARE INVITED. Today we are reposting some of those articles, that in a way can link to our main message about housing, where we will talk about the housing problems in Australia, the Social Security System, and the ASSETS TEST that can prevent the Social Security to be equal for everyone. And I believe that the assets test is the main problem, why today there are not enough rental properties on the market. 

This article can also be found at this Hub Pages link, Assets and pension cuts. 

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. 

This house above can be a rental property. Now, if you are a government pensioner and you own rental properties, it is likely that you will lose your pension, because of the unfair assets test that will cut your pension three times more than what you can earn net from your rental property. This story started the first of January 2017, when this unjust law on rentals started. So, in this blog we are writing about what happened then, by using an article that we wrote then, to show you that what was done then was wrong, and today this law needs to be changed. And this is one of the reasons why there are not enough rental properties on the market. 

NOTE, ARTICLE No: 8.

This article is the eighth article of a group of articles, about Australia and the housing problems 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, Assets and pension cuts. 

Dear readers, in our last article, Australian pensioners alarmed, we talked about the disastrous budget that the ex treasurer Joe Hockey delivered on the 13^th of May 2014, in this article we are continuing to talk about the pensions cut, and the effect it will have on pensioners. Depending on what sort of pensioner you are, these changes will affect you in different ways. So, there are pensioners that their pension does not change at all, some pensioners that will be losing part of their pension, and some will lose it altogether. So, if the pensioners are upset about this change, they are right to be upset. Because Joe Hockey is an idiot, because any politician in his position, must consider first the effect of the budget it will have on the people.

Anyhow, now let us discuss an example, which we have started in our last article, about Mr. and Mrs. Day, who own two houses, they live in one house and rent the other one. Then, we will talk about other cases, and what some pensioner can do, because for every action there is a reaction, so, the pension changes can bring other changes, and most likely, they will be negative. 

Talking about Mr. and Mrs. Day, and what they are going to lose, because of the pensions cut.

Let us see how much pension they received before, then how much they receive now, and whether they are being discriminated. Anyhow, we are setting this case, in a way that is easy to understand, so, all figures are well rounded figure, and therefore they have not been worked out mathematically.

So, Mr. and Mrs. Day have about $850,000 worth of assets beside their own residence.

Before the 1^st January 2017 change, they received about $450.00 per fortnight each.

After the 1^st January change, they will receive about $250.00 per fortnight each;

So, they will be losing about $200.00 per fortnight each. Now because they have problems with renting the house. When the house is not rented, it is hard to live on $250.00 per fortnight. One must keep in mind, that a single pensioner that has no assets, receives over $900 per fortnight, and even they complain about living a modest decent life. 

Anyhow, let us talk about owning and renting a house, because Joe Hockey budget, is a budget aimed at ruining the small property investor. So, these small investors must decide whether it is worth to keep things as they are, or they need to change a few things, to live their life at the same level of other pensioners. So, now let us look, how owning and renting a house affects the pensioners, if they can receive a government pension.

---------------------------------------------

People owning and renting a house. 

People believe that owning and renting a house is the way to go. If you talk to any real-estate agent, they will tell you that it is profitable to own a rental house. But we must ask ourselves if it is profitable all the time, or are there times, when it does not work out in your favour, and owning a second house is not the best thing to have, which is the case of Mr. and Mrs. Day.

As we have said, sometimes house owners find it hard to rent their houses. And Mr. and Mrs. Day, had to rent their house for $500.00 per week, which is a low rent if one considers the house value. Anyhow, they hope that the tenants will pay the rent on time and will not damage the house while they are living there. They have worked out that as things are, after paying all the bills, they can average in a year about $300.00 a week net rent. 

After going over all this rental stuff, we must start to think whether there is something wrong, with the way’s things have been set up for Mr. and Mrs. Day. So, we should ask. Did Mr. and Mrs. Day make a mistake when they invested in this rental property? Because they were thinking that by having a property for rent, they could be better off when they retied.

But now that the assets-test is changed they are shocked, because their second house investment is more a disaster than a benefit. In facts, they are worse off, because if they had only the house they are living in, they would have received a lot more pension, than what they are earning from their rental property. So, they could have more time for themselves, instead of trying to run their property for rent. 

Today we can only ask, what sort of government does this? They tell the people to save their money for their old age, so that they can live a better life. But when the people reach their old age, they turn around, change the laws and take away that money from you. But this is not all that we need to say; you see, they make laws that takes away money from the people on the government pensions, but they don’t make laws to cut their own pensions that are huge compared to the rest of us. You see, the means test, and the assets-test does not apply to their politician pensions, so, they can own huge properties or anything else, they can earn anything, and they still will receive their full government pensions and other benefits. So, there is a law for the public and a different law for the politicians.

-------------------------------------------

What some people could do.  

When the laws change, and those properties that you have worked hard for, they don’t earn what you expected them to earn. You must start thinking many things including about what you want to do, and what you can do with what you have.

In the case of Mr. and Mrs. Day, they are losing so much money that they must start thinking about a different set up, so that they can receive more pension, so that they can live an easier life.

As we have said, Mr. and Mrs. Day, are not on the best terms, they are living together, because divorces and changes are costly, but because of what has happened to their pension, they may have to divorce now. Because, now that their pension has gone down more, they have lost that financial balance, which in a way kept them together. So, they will be forced to divorce, because, if they are divorced, they will receive a single pension each. But that is not all, they will own a house each, and live in their own houses, so, they have no more assets, they will not earn any money, so, they don’t have a mean-test or assets-test to go through to receive their pension. therefore, they will receive the full pension each. Now let us see what difference it will make.

Today they receive about $250.00 per fortnight each.

If they are divorced and live in their own houses, they will receive over $900 each per fortnight.

Which is a lot more than what they receive today, the only question left here is will they do it?

Anybody that is losing that much money will certainly do it, so, let us look at those figures again, but this time let us see, how much money they are losing in a year, if we work both pensions together:

Now, they would receive about $500.00 per fortnight, in a year they are receiving $14,000.00.

If they divorce, they will receive $900 each per fortnight, which will be $24,000 each.

Or 48,000 per year. So, they are losing $34,000 government pension in a year.

Our own views on this is this.

If people start divorcing to receive a full single pension in the future, you cannot blame them, because they have been pushed from the government to do it. If the assets-test had not been changed, this could not happen as much.

Now, let us talk about pensioners owning properties.

-------------------------------------------

Pensioners owing properties.  

The pensioners that own a rental property today are in a lot of trouble, because everything has turned against them. The government changes the assets-test and cuts the pensions down, the properties cannot be rented at a profit, since averybody is screaming to keep the rent down,

But there is more, when their rental property is sold, it is subject to the gain tax, here again the government is robbing what is rightfully yours. They are robbing you, because if you want to buy another property of about the same value somewhere else, you must pay the gain tax, which is based on the difference in price, when you bought the property the first time. If you have bought the property a long time ago, for sure there will be a lot of gain tax. Now, I want to point out, if you need to buy another property of the same value, for personal reasons, why you must pay this gain tax, you really haven’t gained anything at all, because you still have a property of the same value. But the government does not accept this explanation, they work on the difference of the price when you bought it the first time.

Now let us look at some other real-estate problems. Some of you may think that I am exaggerating, because everybody things that the properties are always going up. But old rental properties, that are most affordable properties, are not doing that well, because they become run down and need renovatins, and some times rebuilding. 

Anyhow, we want to conclude this article, by saying that the pensioners are having a hard time no matter where they turn, they find problems.

Therefore, in the future, they better plan to own just one house, and then collect the full pension from the government.

I believe that I have said enough in this article. 

So, see you in our next article, Australia Rental Problems Can Be Solved.

To see more click on this link, Assets and pension cuts.  

See you soon. 

NOTE. This article above, is the link to the following article, Australia rental problems can be solved. This article is also the eighth article of a group of articles that we want to publish. The aim of these articles is to demonstrate that, the Australian Social Security System 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. But the greatest problem is that the politicians do not 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,

----------------------------------  

Pensioners losing their pension.

WELCOME TO OUR GENERAL BLOG YOU ARE INVITED. Today we are reposting some of those articles, that in a way can link to our main message about housing, where we will talk about the housing problems in Australia, the Social Security System, and the ASSETS TEST that can prevent the Social Security to be equal for everyone. And I believe that the assets test is the main problem, why today there are not enough rental properties on the market. 

This article can also be found at this Hub Pages link,  Australia Rental Affordability Issues..  

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. This man below started today rental problems. 

Today rental problems have started more than ten years ago, and this politician above made it worse with his budget when he changed the assets test. Anyhow, this photo is the photo of the 2014 Australian treasurer Joe Hockey, as it appeared in Facebook, they have given him the name of fat cat, because he earns too much money. 

------------------------ 

NOTE, ARTICLE No: 7.

This article is the seventh article of a group of articles, about Australia and the housing problems 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, Australian pensioners alarmed. 

Today rental property shotrage has started several year ago, so, we are reposting and editing this old article to show you the turning point, when things started to become worse, first for the Australian pensioners, because their pension was cut, and some of them lost the government pension. This change of the assets test, first has affected the pensioners, and because of that, they are affecting the rental market as well. 

But let us start from the beginning and talk about the man that brought in this disaster, first to the Australian pensioners, and because of that to the rental market. Anyhow, thas disastrous budget was delivered from the then treasurer Joe Hockey, the 13th of May 2014, today we are still finding how terrible this budget was. Because the 1^st of January 2017, some Australian pensioners have lost some pension payments. But first let us see how the expert have described this budget at that time. So, here I quote:

The grim budget faced widespread criticism and was overwhelmingly rejected by the Australian public as reflected in all opinion polls after its release. Opposition to "unfair" budget measures came from the opposition and crossbench, pensioners, economists, the union movement, students, welfare community and disability groups are protesting. The budget included changes which were contrary to pre-election commitments and promises made by the Liberals in opposition. Critics argue that every one of the following pre-election commitments made by Tony Abbott were broken in the first budget: "No cuts to education, no cuts to health, no change to pensions, no change to the GST and no cuts to the ABC or SBS." Echos of the "dead and buried" Fightback! policy package from the 1993 election occurred with proposals to defer unemployment benefits for six months for under 30s and the removal of GP bulk billing. Most proposals have since been shelved, dumped or modified.

End of quote.

Anyhow, Joe Hockey, has moved out of the Australian politics, but the politician have given him a good job, with a very good pay. Meanwhile the Australian pensioners are hurt from those changes to the assets test that he proposed. Here we want to ask, if he wanted to save money to the government by cutting the pension, why he didn’t propose to cut his own pay and the other politician pay, at least the same amount that the pensioner will lose, just to be fair for everybody, since they receive a ridiculous high pay for their services. We think that to cut the politician pay is only fair, since we are all in the same boat of Australia. Now, let us talk about the Australian pensioners, because they are alarmed and worried.

-------------------------------------

Australian pensioners are alarmed. 

Yes, dear readers, this is an old article, but we are reposting it because it is linked to what is happening today. But let us see what we wrote then. We said, today the Australian pensioners are alarmed, they are alarmed because they feel that the Australian government is ripping them off. They feel ripped off because the changes that are taking place from the first of January 2017 are unfair to them. We believe that they are right to feel alarmed, worried and upset, because some of them will be forced to live with less than the minimum government pension, because they have rental properties on their name. 

Therefore, we will talk about the Australian pensions, since most of us must be interested about. I admit that I am not an expert in politics and government matters, however, when we use our common sense and things don’t work out, we want to have our say. So, let us talk about the Australian politics and what affects us directly. So, the Australian Pensions are changing, from the first of January 2017. This change is hurting people that rely on the Australian government pension.

Here we are talking about retirees, that have not got enough of their own funds to retire and live a modest decent life, so, they rely on the Australian government pension, for a full pension or part pension. Most of the people that will be affected from this change, are the part pension retirees; some of them will receive less pension, and some of them will lose the government pension altogether, because of the changed in the assets-test, that will cut their pension therre times as much as the money they can earn from their rental properties. 

Now, what hurts most these pensioners that are losing pension money, is that the people that have got no assets, because they have never worked hard and tried to save money, they will still receive the full pension from the government, but those that have worked hard, paid their tax and saved their money for rainy days, hoping to have just a bit extra cash when they retied will have the pension reduced and in some cases completely cut off. We believe that this is not right, because it is the people that have worked hard and saved their money, are the people that have paid most taxes in the past.

Anyhow, here are some figures that have been published on the net.

About 330,000 Australians will find their pension cut from the 1^st of January- 90,000 will be losing it entirely, because of the tighter assets test. I believe that it is not fair, because it is already hard for pensioners to live a modest life peacefully.

So, if the federal government loses next election, because of what they have done, they deserve to lose. Anyhow, let us look at some possible outcome, and how people can react to these pensions cut. Here we are going to write about some imaginary case, about what some people can do, because they feel that they are being discriminated and punished for being good honest citizen.

Anyhow, here we are going to talk about a case or two, as an example. You see, before this pension was cut, this couple had accepted that the government would give them only a part pension, so, they tried to live with that, but now that pension is being cut, they don’t know what to do, because it is going to be hard for them to live a decent modest life, since they can earn only a third of what they could receive from their pension. 

------------------------------------

Other pensioners’ concerns 

Here we cannot use real names, so, the name that appear are not their real names.

Mr. John Day and Mrs. Ann Day are two pensioners, they have received a part pension for years, as they are both over 70 years old, so, they are aged pensioners.

Anyhow, let us describe how this change will affect Mr. and Mrs. Day.

Mr. and Mrs. Day own two houses, they both live in the same house, even though they are not on the best terms with each other, and it is said that they will end up divorced soon. Anyhow, they are still living under the same roof as husband and wife, so, they receive their pension as a couple, which is less than if they had the pension paid as single people, so, they start thinking if they are doing the right thing, or they should do other things to improve their financial position. So, let us compare what is happening to their pension. 

As we have said, Mr. and Mrs. Day have two houses, one they live in and another one they rent, so, the house they rent is calculated as an asset, the value of the house is set at 820,000 dollars, add to that a few more things they have, they have 850,000 dollars’ assets, so, their pension is calculated on these assets, as it was before they told me that they were getting from the government about 450 per fortnight each, from the 1^st of January, they are going to get about 250 dollars per fortnight each. This is not enough to live with even if you try hard to save money.

The house they rent, today it is rented at 500 dollars per week, because they could not rent it any higher, now, that is not net money, because they must pay all the fixed expenses, like the rates, the water and other urban utilities, the insurance, the maintenance. But that is not all, because sometimes the house is vacant for several weeks until a new tenant is found. So, there are times when in a year, they can average from the house rent, about 250 dollars per week. So, Mr.and Mrs. Day must live now with half the money the other pensioners receive from the government. 

Anyhow, at this point of time I believe that this article is becoming too long, so, the facts and figure about this example will be discussed in our next article, Assets and pension cuts. 

To see more click on this link, Australian pensioners alarmed. 

See you soon.

------------------------------------ 

NOTE. This article above, is the link to the following article, Assets and pension cuts. This article is also the seventh article of a group of articles that we want to publish. The aim of these articles is to demonstrate that, the Australian Social Security System 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. But the greatest problem is that the politicians do not 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,

----------------------------------