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

Ha. Touched a nerve mate!

You’d weep if you saw my cash balance

 

A lot of renters will have no jobs in the weeks and months ahead, if they haven't lost them already. For example, Qantas got rid of 20,000 employees yesterday - 2/3 of the workforce. The same is playing out right around corporate Australia as we speak.

Those people have to live, so its best they prioritise food (and maybe Toliet paper) rather than rent. One payment to the tenant makes sense, they can buy food from it. If you pay the LL, then two payments have to be made. Given the speed of all this, we don't have time.

Landlords will still get capital gains - where most of the gains are made. Rental yields are poor and just a token. Rich landlords should be able to give up a token in such a big global crisis. As the Prime Minister say, we need to all work together.

 

LOL Go on mate...enlighten us. Give us the full spiel. Make it good so that it goes down in the annals of investing history, never to be forgotten. I will make it easy for you. Start with rule 101

 

Get a life Perthguy….I put mine up from $160 to $170

 

Maybe if Government pays landlord 80% rent.
Rental affordability scheme.

 

Would you rather evict and lose a tenant (who might be able to repay afterwards), or risk not getting any new tenants because of the current crisis?

 

Not really. I just get sick of being told property investors are stupid, don't understand risk or whatever, blah blah. Happens all time on here.

I would not invest in property if I couldn't cover a bit of a downturn.

If you want a real lol then talk to me about my airbnb. $5,500 income last month and no bookings for April or May. Hilarious!

But as I was saying, I understand risk and risk mitigation, so I have it covered.

You were saying?

 

How does Centrelink currently pay rental allowance? Pay it that way and keep consistency with existing systems and processes. What is of more importance is eligibility, length and maximum allowable. I'd be uncomfortable if someone paying more than say $800 a week rental should receive it. This is about alleviating hardship to the landlord and minimising homelessness - not financing lifestyles.

 

I rather decrease rent!!

 

I'm talking back in the day when there was a real downturn in Perth. Not this blip. We were lucky to get a tenant at $280. It was fine. I knew $440 wouldn't last forever so I prepared for a big drop in rent coming in. Risk mitigation.

 

In USA cant now evict until end of April, so if anyone cant pay rent it will be a payment plan?? Lets see how this gem pans out

the thing is property managers have overheads it will impact on their business too. No rent no property management fees

In Canada the government has announced that they will pay rent for 15 week. I think is excellent, this will help renters and landlords

 

Comment was throwaway and you are more sophisticated than most All of this will provide a good lesson for many.

Speaking with management of a few mid market private employers this week, exposed to both business and consumer markets all have either stood down, made redundant or dramatically cut hours of full time staff (3-4 days from 5) this week or will do early next week. Casuals are all gone this week. I’ve done likewise and more next week. The unemployment rate is about to go through the roof as will underemployment. The flow through to lease break and delinquencies in the next couple of months will surprise many.

 

One shoe does not fit all
Depends on many factors, most important how much debt is investor carrying. Its not like they can sell in current environment

what capital gains?? broad comment, assumption that all investors purchased/hold in Syd and Melb???

 

Looks like we dodged a bullet with the Libs holding on to power.

Plus it would have been embarrassing for the ALP to have taken away negative gearing only to need to put it back again straight away! Could be a record year for losses related to holding rental properties (and shares for that matter)

 

Exactly! So no real help at all.

 

An economist was saying today that there are 100,000 Jobs on Seek, that's not counting any other job agencies or the hidden job market. This number should surely be 0 in 3 months

 

Negative gearing is of limited help if you've lost your job.

 

It's going to get tough for people relying on dividends for income.

It's even providing me a lesson in risk mitigation. I'm finding it harder to buy toilet paper for the airbnb than cover expenses. The risk mitigation I put in place was financial, not physical. I'm going to have to make an effort to source toilet paper before I run out. I never thought I would post that on a property forum!

 

Agree dividends will be impacted. However, the difference here is leveraged vs unleveraged exposure.

 

There's a rife in stolen toilet papers atm