This Australian rental problem is hard to solve.
This must be the Australian
rental problem that nobody can solve.
Let us start again from
the beginning. Most countries have their own problem that need to be solved, so,
they look for ways how to solve them. These days in Australia we have this
housing problem because there are not enough houses to accommodate everybody,
and while there are not enough houses, there are still emigrants coming in, and
this will make this housing problem even worse. The federal government, the
local governments and people talk about how to fix this rental problem, and
they are suggesting a few things how to fix it, like most governments suggest building
properties for rent, as if this can solve the rental problem for good, but I
doubt that a few thousands new units can solve the rental problem. Because we
need several times more units than they are suggesting. So, it seems to me that
they do not know how to fix it properly, because what they are suggesting can
only improve the situation a little, but we need something that will last for a
long time, so, we must look for ways that can solve this housing problem for
good.
Anyhow, let us see how bad this
rental problem is, and the best thing to do that is to paste a report from the
internet. (And I quote)
Sydneysiders are
continuing to face the longest stretch of rent rises in the city's
history, but there are signs the market is slowing as tenants reach the
limits of their ability to meet increasing prices.
The Domain Rental Report, released on Thursday, shows Sydney
renters are paying an average of $720 a week for houses and $680 a week for
units.
That represents a $70 increase for houses and a $130 increase
for units compared to the same time last year.
The report also shows the city is facing its lowest ever
vacancy rate at 0.9 per cent, meaning fewer options and less bargaining power
for those looking for a rental.
Nicola Powell, chief of research and economics at Domain, said
the figures represented the worst conditions for renters in Sydney's history.
"It's a very stressed picture for tenants in Sydney,"
Dr Powell said.
"This is the longest stretch of continuous rental growth
that the city has ever seen."
But despite the record high rents, Dr Powell said the increases
were not as fast as the "extreme" growth seen last year. (End of
report)
Now let us talk about, what has caused this problem.
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What has caused this rental shortage.
Having said that
and seen the Sydney rental report above. We should ask ourselves why this is
happening, and we must try to see what is the main cause that has created this
rental shortage. So, if we keep an open mind, and we do not blame this group or
that group for what is happening, it will be a lot easier to see the reason.
Anyhow, I am 100% sure that the main problem is there, because there is not
enough money in running rental properties, if there was money to be made, there
would be lots of people trying to invest in rental properties. There is also
the problem that rental properties are hard to run, so, people that have money
keep away from having rental properties, because it is easier to invest
somewhere else, where you can get better returns, with no problem at all.
Today with what is
happening in the rental market, there are only a few existing investors left,
and even these are thinking about selling out, and investing their money
somewhere else. You see, today the landlords are being blamed for the rent they
charge when renting their properties, as if they are robbing the tenants, when
the reality is that they are losing money, because of the many levies charged
on those properties. If the government in charge want to solve this rental
problem. Then they must stop blaming the landlords and find ways how to keep
the rental market alive so to speak, by pumping more money in the rental
market. Everybody here must understand that the landlords are running a service
to the community, and if you are in business you need to make some money,
because that business cannot survive if you lose money.
Now that I have
said that, let me add this. It is up to the government to find ways how to keep
the remaining landlord on the market, otherwise they will all disappear, and
the problem will be a lot bigger than it is now. Wake up politicians of
Australia, do the maths, as if you are one of those small investors before you
speak, and you will see the reasons why this is happening. And perhaps you can
slow down, this process of the small landlord leaving for good. You can try to
build some affordable rentals, but they will never be enough, you need the
private sector to continue to service the community.
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What the government
is doing now.
The following is what I
found on the internet (and I quote).
Another 600 homes will be built across Queensland with a federal funding
injection after a surging demand for social housing in the state.
However, state Housing Minister Meaghan Scanlon says it must be
the beginning - not the end - of the Commonwealth's engagement in solving the
housing "puzzle".
Almost $400 million from the Albanese government's Social
Housing Accelerator will deliver the extra homes, with 80 per cent to be built
outside Brisbane.
It
adds to the Queensland government's $5 billion social and affordable housing
investment that will help commence 13,500 homes by 2027.
"This will build hundreds of homes across Queensland, while
we will continue to work with the Palaszczuk government to deliver even more
homes," Prime Minister Anthony Albanese said. (End of quote).
The question here is about the cost that the taxpayers will pay
to build these rental properties from scratch. Because it can be a lot cheaper,
if they give more money to the low-income earners for rent assistance, and abolish the assets test
on affordable rental properties, that the mums and dads still own, despite losing money. It seems to me that they are the heroes of the economy, but nobody wants to admit it, that is one of the reasons, why affordable rentals cannot go back like they were in the past. I hope you
can see what I mean.
Anyhow, this is all
in this article, I will write next article about rental, where I will show you
what I mean about doing the maths, with some examples.
To see more click on this link, Rental Problem Discussions,
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