Government says tenants don't have to pay rent if under hardship

Discussion in 'Property Market Economics' started by Jess Peletier, 20th Mar, 2020.

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  1. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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  2. SatayKing

    SatayKing Well-Known Member

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    It is still all about ME!
    Why?

    It is highly likely my income from dividends will decrease yet I will still have expenses to meet. I don't expect or anticipate I or others who invest via shares will get relief so reasoning why property investors should get it?
     
  3. Lacrim

    Lacrim Well-Known Member

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    Open slather to scam landlords.
     
    Last edited: 20th Mar, 2020
  4. Hetty

    Hetty Well-Known Member

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    if tenants stop paying rent then property investors (many who are “mum and dad investors”) can’t pay the interest (though the banks may allow us to freeze our mortgages). Everything will need to be done in balance.
     
  5. James Bond

    James Bond Well-Known Member

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    "All Australians are going to be making sacrifices, obviously, in the months ahead. “And everyone does have that role to play and that will include landlords"

    errr..... everyone?

    So, presumably landlords will be relieved of the obligation to pay rates and land tax for instance....
     
    Last edited: 20th Mar, 2020
  6. The Falcon

    The Falcon Well-Known Member

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    lol at Resi property investors only now understanding the risks inherent in investing.
     
  7. SatayKing

    SatayKing Well-Known Member

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    It is still all about ME!
    Argument can equally apply to those who invest via shares. And so?
     
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  8. James Bond

    James Bond Well-Known Member

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    Breaking news: All landlords are required to provide tenants with a minimum of 10 free toilet rolls per week.
     
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  9. jprops

    jprops Well-Known Member

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    Yes and also, what about relief to home owners paying mortgages?
     
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  10. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I think most of us understand the risks. And are hopefully prepared for them.

    But if the government is providing relief for rental payments, surely those funds should go toward actually paying rental payments? Makes sense, right?
     
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  11. Hetty

    Hetty Well-Known Member

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    Can it though? How will that result in people losing a roof over their heads? I mean you could argue about a long chain of events but it’s not as simple as: don’t pay rent, mortgage can’t be paid, house needs to be sold.
     
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  12. Blueskies

    Blueskies Well-Known Member

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    Not entirely accurate, there is a few hundred billion dollars of support heading the way of the companies that make up our share portfolios. Similarly there is some benefit heading the way of property investors through fall in interest rates. I agree with support for tennants but as @Hetty said, it needs to be balanced.

    Plenty of landlords will be under financial stress as well. I don't think the prime ministers language was great in this regard, see quote below. Lumping landlords in with banks and the commonwealth government is hardly a fair analogy, I am neither too big to fail nor have the capacity to print an infinite amount of my own money...

    Now, I know that will mean something for landlords, just as the decision taken today means something for banks, just like the decisions we have already taken as a Commonwealth Government means things for our balance sheets
     
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  13. Lacrim

    Lacrim Well-Known Member

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    The biggest risk to resi investors by far is the Govt.
     
  14. Hetty

    Hetty Well-Known Member

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    Yes exactly. Otherwise what, tenants can’t pay rent AND they get a handout for not being able to afford rent? Not like they can go spend that money on toilet paper!


    A side not here but let’s also not forget that many (if not most) of the liberal party are property moguls who like their rent being paid and want house prices to not crash. And a lot of their electorates are also property investors, whether mum and dad investors or more “upscale”

    I think what ScoMo said when lumping us in with the government and banks is his normal foot in mouth blubbering, he’s not as articulate as other pollies.
     
    Last edited: 20th Mar, 2020
  15. Lacrim

    Lacrim Well-Known Member

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    I've got a better idea. If tenants can't pay the rent, the Govt. can pay it on their behalf.

    Otherwise, all you're doing is transferring the hardship from the renters to the landlords. Not all landlords are dripping in money. In fact, most aren't.

    Getting screwed is the price you pay for trying to get ahead I suppose. They must want everyone relying on a pension.
     
  16. AndyPandy

    AndyPandy Well-Known Member

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    Some relief for home loan customer too. But what does "interest capitalised" mean? Also, is it just for home loan or for IP loans too?

    ANZ
    Customers can also request a deferral of home loan repayments for up to six-months, with a review at three-months, with interest capitalised.


    Coronavirus: NAB allows homeowners to defer repayments for 6 months
     
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  17. Hetty

    Hetty Well-Known Member

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    @AndyPandy it means in the long term you still pay it. It gets added to the loan.
     
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  18. Scott No Mates

    Scott No Mates Well-Known Member

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    I would not roll in my toilet let alone roll in the tenant's toilet.

    (edit: my toilet is very small, I would bump my head :oops:)
     
  19. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Seriously, they shouldn't be investing in rental property. With that type of landlord, a tenant is constantly exposed to having to live in crap conditions because the landlord can't afford the repair. If a landlord hasn't got a 5 figure buffer, they should stay out and put their money elsewhere.

    In Australia, the masses believe renting property is easy - this crisis should be seen as a harsh lesson to say it isn't. In the current situation, having a large amount of people homeless would exacerbate the problems so I'd probably give some rental assistance to landlords with a taxable income under say $120k and only for a period up to 6 months). This assistance would come with conditions that after the crisis, the property rental market undergoes huge changes (including tax) to avoid similar exposure AND to claw back the money from landlords that will be paid out during this emergency to landlords.

    The country is going to have to pay for this crisis and I don't have an issue with that but there shouldn't be any 'free' money to the over-leveraged or those with a personal income high enough to cover their losses.
     
  20. Perthguy

    Perthguy Well-Known Member

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    Only now? Some of us are Perth investors bud. My rent in Perth dropped from $440 to $260 during the downturn in Perth. We are fully aware of the risks.

    I don't think the "safe" etf/lic investors would be feeling smug right now with the value of their assets plummeting right now and those 'secure' dividend streams evaporating.

    It's all fun in this climate playing your investment sucks more than mine. Not really good form loling at anyone right now though. Just sayin' ;)
     
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