What’s causing Australia’s nightmare rental market? - Podcast
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- Опубликовано: 25 фев 2023
- With tight housing supply in Australia, it’s a landlord’s market, and renters are queuing out the door in a fight to get a lease. But what’s driving this rental nightmare? Is it inflation? Housing availability? The Phillip Lowe effect?
This rental nightmare raises even bigger questions for Australia: whether we can fix housing. Because the impacts aren’t just on buildings - there are very real effects on tenants, especially women, seniors, and low-income earners.
Listen to host Kat Clay, in conversation with Trent Wiltshire, Deputy Program Director and Joey Moloney, Senior Associate, about what's causing Australia's nightmare rental market, and whether we can fix it.
For more information, visit: grattan.edu.au/
This is one of the things that happen when the Australian middle class became convinced that *flipping properties* would make them wealthy; in other places in the world properties are *buy and hold forever* deals with 3rd, 4th and 5th generation of the same family renters living in them- it's all about GREED. You'll also notice that many countries that had 'buy property, get a residency' schemes are now closing these- why? Because RE speculators, who have NO interest in the actual countries they're going into for their own profit were driving prices up beyond the ability of the *inhabitants* of the country to afford. And guess who gave overseas investors free reign to buy up large swathes of Australian housing and property, have zero interest in the wellbeing of the inhabitants of Australia and do NOT care one iota if Australians can no longer afford homes? Yes, that's right, Chinese and other overseas investors supported and welcomed by the Australian govt. Well done, voting idiots who only think in terms of their wallets but don't give a toss if THEIR kids are going to have a future.
I was going to write but you have got it in one go. We have a country where Capitalism has reigned un abated..in other words those with cash have invested to use property as a cash cow. Coupled with our guvments lust to import immigrants at a time when the construction industry is going broke at a rate of at least one a week, and you have a perfect disaster on your hands.
In a word , like you said, it is no longer about making sure your people can be housed, but put the onus on private investment and let unabated GREED take its toll. We also have a country where decades of dumb asses have run us into the ground with high cost of energy, and commodities in the home market whilst giving them away overseas for profit. Grouped together it is thoroughly disgusting.
A country brimming with natural wealth, that can elevate everyone to a better living standard squandered by imbacilic beaurocrats resulting in a country's lower and middle class, now facing living in tents!
I've been renting from a management company on the Sunshine Coast for 5 years. The first year I was in a private unit and the last 4, I've rented under the NRAS scheme. I'm 71, I'm divorced and on a pension. I thought I'd never leave my unit but NRAS is finishing and rents are almost doubling so many of us are being forced out. A lot of people are older than myself, have little to no computer skills and nowhere to go. It's scary and it's terribly unfair. Greed is the motivator. It's alright for ministers and the premier tucked away from us peasants. They have no idea how real people, in the real world are trying to survive. My father, who was a POW on the Burma Railway for 3 and a half years would be disgusted that his efforts and the efforts of a lot of men and women, their sacrifices and lives were taken for our Country to get to this state! It's shameful.
So ture emtagget3486. stay safe and god bless.
Thank you for your kindness
Rental properties have a cost related to inflation and interest rates. It’s not up to the landlord to shield renters from inflation.
Its not only about construction its about destruction of existing stock. If you a refugee you get priority housing, look after all vulnerable people equally, including Australian citizens.
It's nuts that state governments implement policy changes like tenant protections without capturing knock on consequences. E.g. make tenancies have more features or generally cost landlords more to supply the rental, results in less rentals being supplied by the private market. When policy is implemented that will have a negative impact on supply, the government needs to build more supply at the same time. This means the quality of rental stock increases without rents increasing.
People with full time jobs are living in tents and cars. That is unacceptable in Australia, which is a first world country not third world.
Fun Fact: 3rd World Countries have better housing than 1st World countries. We, the so-called first world nations have stayed in the past. Until this very moment, we are still using sticks & matches, bricks & mortars to build our homes! Whereas 3rd world countries have already moved on to more advanced technology in construction. 😓
Change negative gearing to one single property only and cheaper units will start coming onto the market because those with too many investment properties will want to liquidate them. It's still fair to investors, and first time buyers will be able to get into the market.
The south Australian Labour Government moved rented Department of transport planning and infrastructure and houses onto house commision who actually says they are not there theirs but private rentals. They then contracted Hardcourts Real Estate to manage the properties. Hardcourts then serves notice to vacate the property say that they want to demolish the houses. This is happening at a time when it is almost impossible to get a house in the rental market. After the house demolished and the land is vacant it just sits vacant not for sale. There is hundreds of blocks of government land sitting sitting on the Labour governments books.
To make the situation worse the Labour government then announces that the will increase migration to 400,00. This is just idiotic behaviour, families are financially stressed to the max now. This will not only push single wage families into homelessness, crime will increase most likely see an increase in divorce due to financial stress. This will no doubt will only ensure that inflation in Australia stay high for longer. more people chasseing limited supply of goods does that.
I have lost respect for Anthony Albanese who crows from the rooftop that he grew up in a housing commision home, well Anthony welcome to world in Australia you would not be afforded that help in housing you would just be living in a tent. Shame on you Anthony
BS at to; lots of people little housing....so let's raise rent because there's not enough houses...what an extremely greedy excuse.
I call BS on this!!! Reserve bank raises 1% and landlord and real estates jump on band wagon greed and raise rents by 30 to 300% as an excuse. So 1% is not that great a % on a loan. Landlord go into a know risk on loans. So why pass buck onto renters at exuberant rental raise prices!!!! It's called "Greed"
Check your arithmetic. Official interest rates have increased by 3.6% over 12 months (from 0.25% to 3.85%). On a $500,000 loan, the extra interest is $18,000 per annum, or $346/week. So, if the landlord's interest bill has gone up by $346/week, but your rent has gone up by $100/week, where is the "greed" component?
This sort of irrational angry response from renters shows how clueless you are...my elderly mother has a property where the rent matches her costs. Her land tax bill is 17000. In other words she makes zero money from the property
400,000 AirBnB, Stayz etc created in last decade any influence??
It's not houses. It's land. If everyone wants to live in these few tiny areas you can't build your way out unless you switch from single family homes to high rise condos.
Hear! Hear!
It cost more to buy an allotment then the house build on it.
In the old days land cost a year’s annual salary, a house double that.
These days both are 4 years annual income each.
I'd hate to be an aged pensioner trying to find a property they can afford. A very sad situation in Australia
Your sentence does not make any sense. Who is "they" referring to here?
@@alexrubin5955to people on an aged pension.. are you dyslexic?
No investors / landlords
No rental properties
All of Australia’s crises _except_ for the lack of infrastructure crisis, the land release throttle crisis, the people buying existing housing crisis, the negative gearing crisis, the desecration of sacred Aboriginal sites crisis, the capital gains tax crisis, the creaking healthcare infrastructure crisis, the ageing population crisis, the illiteracy crisis and the unproductive property bubble economy crisis are pretty much a result of badly timed skilled expat immigration that the Australian Government ushers in to increase its tax base and to put pressure on resources such as water, housing and energy supplies.
Too right this dumb government want to bring down inflation by bring in a million immigrants who will all be happy to work for $18 per hr
Expats aren't immigrants, they're emigrants.
I'm sure it'll be fine in time. It's not like in September 2022 the Labour government increased the immigration cap to a record of 195,000 people. Oh, wait. Where are we going to put them? And they'll need jobs too causing an over supply of worker lowering wages as they all fight for the available jobs. Damn.
The elephant in the room is actually too much immigration same problem in Britain they all want a better life at the cost to the existing population. The mess we are in is undeniable. Sick of people saying that immigrants contribute to society , perhaps these people should put them up in their house
In Victoria we have horrific tenancy rules & extremely high land tax bills. For example in Victoria tenants can have dogs. This means gardens can be totally trashed and the interior can also be damaged.
If you want to get rid of a tenant it's difficult. For example if you say you are moving in then you can't rent for 6 months. There are fines of 27000.
In Victoria land tax bills of 10 000 to 15000 are common.
In essence you are barely making enough money from rent to cover repairs.
Its all a mess. We have made property too expensive for both landlords and tenants
Good intelligent discussion Enjoyed it have subscribed Well Done
Rent increases are forcing young families further out of good communities with the flow on of lower student numbers in many public school. Our local school numbers have drop from 1000 students 7years ago to 600 students.
Not answering the question, Negative gearing, Greed, Political disinterest, due to their greed.
I heard that squall warehouses are being concert into Dormitories and they have portable loos ...
They said go to tge local swimming pool for a shower .
Melbourne Australia...
The Chicago of Australia.
What is needed is the government is to set in place is legislative law that landlords and real estates can only increase rent only once a financial year at a locked in increase of only $10-$20 dollars per year. Also a royal Commission should be immediately implemented to investigate investors (landlords) and real estates for fraudulent criminal behaviours in regards as to why they required to raise over inflated rental prices and especially as to why properties such as units, townhouses and houses that do not have a bank loan against these investments that have had exuberant rental price increases.
I'd vote for that. There is a big question over those investors who have paid out their mortgages
Yes abolish negative gearing and see what happens to rental supply
This is a great intelligent conversation on the rental market.
Thanks, we appreciate it!
Plenty of commercial space sitting empty in the cities, rezone them for units. But first let the commercial market collapse so the people can afford to buy a unit.
We need to stop immigration temporarily. Seriously.. The government is always saying we lack skilled people. But inviting them only makes things worse. Where will we all live?! It’s also making most Australians lazy & rely on other people instead of using out residents & citizens. We can re-open Australia after 10 years for immigrants. That’s the reality of how much time we need in order to address the housing crisis. We need to build more houses using our own people. Let Aussies work! Since the pandemic, we have all become lazy! And we’re only using the Wuhan virus & Ukraine war as an excuse for evrything.
We need to stop this “my dog ate my assignment” b.s. excuses!
What about the dismal number of public housing units being built now in comparison to 10 years ago, every aspect of life is geared to the greedy, wealthy ,selfish,powerful inconsiderate, tax payer funded group of the people in Australia, what a shame, what have the greedy done to our lucky country 😔
This current crisis is the result of bad housing policy spanning decades and it is going to take decades to fix. The selling off of public/social housing stock in the late 80's early 90's was the beginning. I work in homelessness services and the new cohort of lower to middle income families now becoming homeless due to ridiculous rents, are being overlooked. The increase in homelessness will continue until government's reinvest in creating social housing for average Australians who are completely frozen out of Australians housing market.
SA Housing Authority, department of Transport and Infrastructure in conjunction with Harcourts are terminating tenants leases from houses just so they can demolish the house only for the land to be left vacant. The houses are old but very livable, Hardcourts have told me that they don't have alternative housing available but its a directive from Housing commision. In the Hardcourt agents own words we just need to get them out. I Am 58 years old with nowhere to go now living in a shed.
They are evicting tenants who are not behind in rent or doing anything wrong, then quickly demolish the house within weeks. Driving around Adelaide there is just so much vacant land with no for sale signs on it, a lot of it is government owned.
This is just the wrong time in history to be carrying out this sort of house demolition just to keep the land vacant for years to come, we are talking about hundreds of houses per year. Drive around the western suburbs there hundreds of vacant lots owned by the government.
The Hardcourts agent rang me 2 hours after I had received the notice of lease termination by registered post offering to send a truck around to my house collect my belongings and donate the to charity if that would help me to get out. My case is not isolated this is happening all over Adelaide.
From what I gleaned through talking to their "Bum Rush Person'" was that property investors a demanding higher rental returns, so the SA government has a mandate to get rid of low cost housing and then make federal government hand out rental assistance.
Then there is the surge in immigration, Immigration is a good thing but at the level announced by the government it will hurt more than it will help. Our medical system is stressed to breaking point, Housing is already broken the government departments are acting independently and don't seem to coordinate.
Anthony Albanese crows about growing up in a Housing commission house, no doubt he got free university as well. The reality today is government is actively reducing stocks of low cost house then going on TV to lie about what they are doing.
Australia is now one of the dearest places in the world to rent a average house. Shame on you Hardcourts, shame on you Peter Malinauskas, shame on you Anthony Albanese.
Kill off housing inside superannuation.
Kill off housing inside superannuation.
A great deal of propaganda spoken
We build a lot of houses relative to our population.
We need to reduce migration.
$9bn goes to Landlords just in the ATO Business claims (3x the current housing stimulus). That doesn't include salary tax holidays, tax free super, tenants rent going into super or coming back tax free......🏏🏏🏏🏏🏏🎯
69% of inflation is excess profits. ~300K short term properties and 1 million empty homes during census (could be overlap between these two). Labor proposal for what? 4000 new homes.
Unlimited negative gearing and stage 3 tax cuts certainly does not help.
Talk about generational inequity.
Victoria has recently been mandating "minimum stanďards" in rental properties. The costs of bringing properties to the minimum standards are passed on to renters and is one cause of increases in rents.
Have you lived in a rental recently? I remember paying 1650 a month in 2018. We had no heating all winter. The landlord owned 6-7 properties in the street.
The minimum standards are pretty limited. Put a clock on the wall?
Shame on landlords for not having minimum standards already.. Is it too much to ask to not live in a property full of black mould?
To solve this problem, houses should be built for homeless people, not for the free market. If the state wants, it can organize this situation, after all, isn't the state the biggest landowner? even in housing ownership, a division can be applied such as married, married and children, elderly, single people.
Governments have to give people more incentives to build houses.
Surprised how neuanced this conversation was. Very good overview but disappointed they shyed away from the obvious short term solution which is to reduce migration.
Low wage increases and low vacancy rates will both be eased by having fewer people moving here.
It's immigration and air bnb!.
When you work and study at home you generally need more space.
😊sheer greed plain and simple there’s no other reason
wouldnt raising the rent help in more revenue being generated, being taxed on that income and using the tax to create more affordable properties?
The fact that you think this is even a thing demonstrates you don't actually understand how all of this is working.
@@Ninsidhe shouldn’t annual rental raises be made though? After all capital gains tax will be included, so there goes a huge amount of profit. In the end the landlord has to make money too to keep the house afloat. As a renter myself I understand it’s tough but it’s fair isn’t it?
Air B+B
People must get costs of financing a home so rents are high on this ponzi scheme and this due to 40% tax by government on homes.
It’s a pretty poor situation all around and whilst I understand that this segment is on the “rental market” it would be nice if they addressed more reasons rents are going up and stop trying to paint landlords and investors as some kind of evil. Everytime the RBA raises rates (already proven to be a blunt instrument) mortgage repayments increase, and those costs are passed on, meanwhile our big 4 banks announce year on year record profits. Rent freezes is a decent idea, but that’s not plausible unless it’s also applied to freezing interest rate rises as well.
seen how much land tax is?
Check out Canberra for land tax, my old IP (townhouse 2 bed) is $4600 a year. Thanks to our local Greens - Labor Overlords and all the new rental reforms coming online. Fun place to be an investor lol
Landlord isnt enough protection from the government.
Excess migration!
no wrong very simple too much immigration
We just sold our house. It was our second home for Airbnb. We went through 3 price reductions in 3 months. We ended up taking about -32% off original asking. It was very tough.
The Australian housing market/real estate was cooling off and correcting from 2016 right up until 2019 - and then they acted. This is well documented by an Australian RUclips channel called "Economy Times".
In March 2020 several taxpayers funded "Housing protection schemes" were enacted, things such as slashing interest rates to almost zero, allowing early access to superannuation, "homebuilder" and other renovators' programs, increased first homebuyers grants in addition to pre-existing investor protections such as negative gearing.
Since 2022, increasing interest rates are being accounted for and countered by unprecedented amounts of mass immigration in order to prevent any price falls through artificially generated demand and therefore artificial shortages. They do not want the correction that started in 2016 after the end of the mining boom to repeat and they are making sure it doesn't - at our collective burden and cost.
There would be no issue with this self-serving behaviour if the renting class was not forced to contribute to it. This is discrimination plain and simple, which you need to oppose and resist in any manner appropriate to you. This message is aimed at renters and otherwise homeless, you need to present a united front and resolve this problem by any means necessary.
Never forget and never forgive March 2020, when they acted against you.
It's super simple, more landlords = cheaper rents. So where have all the landlords gone and why have they left?
Not profitable atm.... unless one hopes for a capital growth, which isn't happing atm
@@last_samurai6690 in the old days you just held for years and then sold to make a profit from the CG. I think it better to sit on your hands and be a very very careful watcher of the market.
I just think it's not worth holding an IP for a long time anymore. Too many changes/reforms happening also for landlords. Soon you might forced to sell an IP with the current sitting tenant in place the way things are heading lol
@coffeehouse44 I am in nz and things are worse here than in oz. Interest rates are higher. House prices are falling faster. No interest deductibility except for new builds. Healthy homes legislation. Hard to evict...Calls for rent control. I wouldn't put a dollar in property atm. A term deposit looks way more attractive with as much as 6.x per cent if you shop around, without all the hassles of managing tenants and dealing with over changing regulations.
@@last_samurai6690 NZ is looking bad from what i have read, i see that everyone wants to follow overseas direction. Like that is helping the tenants. NZ is sounding pretty bad being a LL. I have sold up and just dumping any spare cash into Super.
Currently not worth investing large amounts of MY money into an asset (property) i will have zero control over thtat property. The crazy Greens want to cap rents, like that will increase investment lol.
They're turning properties into Airbnbs
40% government tax means houses are dearer and owners must charge more rent easy peasy
1. Intetest rates increase.
2. Land tax increases.
3. Bill increases.
4. Food price increases.
5. Everything increases.
6. Renters want the rent NOT INCREASE.
.......
So what about landlords who have already paid off their rental debt loan house investment. Therefore why are they raising rents when they the landlord have no debt on rental property anymore. Oh the landlord bought their $1M dollar personal home from money on debt free rental property investment and now their personal home of $1M home loan is being affected by RBA 1% increase and therefore raise rent on tenant's who live in landlords debt free property investment. Smart people but still greedy evil landlords......oh wait poor landlords maintenance, repair and external building painting costs on debt free rental property investment must range over $100,000.000 each financial year for an ordinary unit, bungalow, townhouse or house😂😂😂 BS!!!!!!!