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

It isnt just you, there have been several sneery comments being made across the forum. On another note, do you think we are so dumb as to need your other info about huge stand downs. We can all turn on the tv and read a newspaper if we cant think this through on our own.

 

Wow. Lovely! You really aren’t handling this well are you

 

Please, many here have been investing for decades and have had numerous defaulting tenants who refuse to leave while causing significant damage. Leverage is leverage no matter what the asset class.

 

Tomorrows auction results will be interesting to see if investors stay in the market , given todays comments re no evictions and renters can effectively stop paying rent should they lose their jobs.

 

I would be surprised if there were many/any successful auctions tomorrow.

 

Well the share investors have been high fiving for the last 3 years, but hardly in a position to preach or judge at this point in time considering the carnage

 

I have read from various "unoffical" sources that "pandemics" are not covered in many insurance policies

I haven't checked mine yet

 

It is pretty pointless to try and gain points of superiority when all asset classes are going to take a hit, due to an unforeseen event. The pain will be suffered by many. Obviously more so, by those that are highly leveraged.
Any investment comes with risk. This event is a complete outlier, which wouldn't have been factored into peoples strategies.... hence the uncertainty and pain.
Time heals everything.
Just remember some share investors will make good coin from buying at basement prices, holding, and selling when markets surge again. Nothing new, same old , same old.

 

Yes my point...

I am more concerned for the small business operators that will be hit hard and got no plan B


I am waiting for cba to hit $30????? Prob wont happen

 

The issue here is that there will be many tenants will now even use this throw away line as an excuse to stop paying rent. I’ve spoken to a few of my PMs last few days and one comment was “oh they’re really coming out of the woodwork now” in relation to delays in rental payments, blaming the current situation, when in reality they’re still employed and just late. It will be all too easy to say “Scomo said I don’t have to pay my rent, so I’m not going to even try to prioritize that.” Once the threat of eviction is removed, the game changes.

We can forget landlord insurance rent default too - most insurers will only pay loss of rent due to default with a court order. Which court is going to make the order in the event the Government says they can’t? No court order, no insurance.

These are concerning comments from the government, despite there being no policy yet.

 

Yesterday I leased a property in brisbane. I redued the rent by $25 a week below most other comparables but in return i wanted a 6 month lease paid lump sum in advnace. Ther 4 tenants agreed.

Win-win

 

Have you got the Asian tenants? Very common for them to pay in advance sometimes upfront for 12 months

 

Be honest, because you primarily have your money tied up in real estate, here and abroad, you lean that way. You have previously admitted that you don't have a great understanding of how the sharemarket operates. Don't try and undermine those that do, it is not a good look.

CBA were over $100 not too long ago!

 

It shouldn't make any difference if you have some debt and have been living off dividends. Interest rates are low, leverage is cheap. Those living off dividends will be getting a haircut soon and have to stop buying over priced wine.

 

My point was about capital.

I’m banking on some wine bargains this year. Already getting inboxed with some offers.

 

A lot of whinging and hand wringing going on tonight

Does anyone have anyways to get around scomo's proposed policy? I have a few houses with tenancy agreement and thinking about the fine print that we can use in our favour.

Ideas anyone?

 

smart

 

I've spoken to my tenants who are Concreters and they have assured me that at this stage they haven't had any impact on their business. Even if my tenants did fall on financial hardship I have a sufficient buffer in place to pay all my loans.

 

Thats old news, the market is changing every day, who knows in 6 months

Lesson here.... its a property forum, take it with a grain of salt and clearly no one is an expert lesson no 2

 

Anyone with any practical ideas? Surely there's a workaround for property investors if tenants dont pay?