Govt bailing out mum & dad investors

Hi

I am going to look into pausing my payments. I’ll make some enquiries with the banks. I wonder if I’ll have to show financial hardship.

Story is is that my ip mortgage went up $600 a month as I’m now paying P and I and to help pay for this increase I started a second job which is umpiring on weekends, however due to corona virus the footy season has been postponed until the middle of June. I was going to be making between $400 - $600 a weekend.

 

The thing is these policies can only be provided for so long. Everyone can't be bailed out.

There may be some side benefit of supporting Mom & Dad investors short term, but this is primarily to deal with what would hopefully be short term employment fallout (It will be for some, but I don't think it will be for most) which can affect Renters, PPOR Owners and also investors.

It's a cushion/option on a V-Shaped recovery or to let people get out in a controlled fashion for a prolonged slowdown.
I believe the V-Shaped recovery won't happen and most should think very seriously about using this buffer for it's intended purpose to sell/delevarge in a controlled fashion assuming they have suffered loss of employment.

 

These are gonna be bloody expensive for taxpayers.

I was looking forward to the tax cuts in the next 5 years, but they might just get rid of it.

We're becoming a more socialised society, even in the USA, the bastion of capitalism.

 

It could become L -shaped!

I've been saving money equivalent to 5 years of my take-home pay, for exactly this reason! I've learned a lot being unemployed during the GFC that I've decided to live a happy minimalist life.

 

I thought you sold that property a year ago (a studio that was the subject of quite a few posts).

 

I believe Alex is referring to her PPOR, having moved home with parents.
For those who want to scoff, this lady is certainly not ripping off any taxpayers.

 

We were given a good start by my father who was flipping houses from the 1950's, he bought a tiny weatherboard house in Eastern Road, Turramurra with a huge block of land for us, for which we paid rent, he sold it 3 years later and gave us the difference between what he had bought and sold - we then had enough for a deposit and legal fees etc. for our first home.
Will be forever grateful to my parents ...

 

In the midst of the crisis, no-one knows the cost but that is a discussion for tomorrow because right now it is about saving lives. What we do know is that you, me and every taxpayer in Australia will pay the cost in some way.

I don't have an issue with softening the immediate financial blow to property investors but I'm not in favour of forgiving debt. No investment should be seen as a safe, one-way bet.

 

Where did you get the idea that investors should be forgiven debt? All the posts I've read in the last 24 hours are starting to blur - who said what - but I dont think the vast majority of property investors in this community are suggesting we should be forgiven debt. We were insulted yesterday by a couple of leftie trolls exercising their right to freedom of speech, and by a few other people who have nothing better to do than gloat about their own prosperity.

 

I don’t think anyone has said or even implied that. What most of us have a problem with is the idea of a rental holiday being thrown around while mortgage repayments, rates, insurance, maintenance and land tax bills keep rolling in. It suggests that all landlords are wealthy, greedy speculators which is delusional.

Obviously anyone making an investment must carry the risk associated with such a decision.

 

Agreed there has been a few posts and threads and things have been blurred. I'm not going to reread the number of threads because whilst I'm sure I read something on debt forgiveness, its not worth labouring the point. It is also entirely possible I may have misread or misinterpreted the intent and have based posts on those thoughts.

 

Let's see how many "property market capitalists" can look at themselves in the mirror and call themselves right wing after all the handouts they're about to take from daddy government. Cognitive dissonance 101.

The economic lunacy that we have experienced the past 10 years is the reason the left wing types are going to have a strangle hold over the world for the next 10.

 

Hey, the property bears are back! Where do you guys go when the sun is shining? I'm picturing Gollum-esque characters tucked away in a cave somewhere waiting for "the precious" (a meaningful property crash).

Any of you planning to take advantage of the current environment and picking up some bargains, or would that end up causing an existential crisis?

 

Cashed up ready to buy the fire sales!

 

Please do, come join the capitalist dark-side!

 

Not buying into a bubble is not the same as not being a capitalist. What this forum seems to call "lefties", are just people who didn't get themselves into insurmountable debt and are against bailouts of people who entered into risk of their own accord. You're going to be in for a real shock when the actual leftists come into power. Something that I am very concerned for as an investor and a business owner.

 

bad time to have a useless government in power. I reckon labour would've been pumping the stimulus right now which is exactly what we need. Too bad some people can only think 6 months ahead.

 

We don't know what labor would have done and no use speculating in the midst of the current crisis. However, I think its reasonable to suggest that this Govt have been found wanting on every big issue since they were elected. The Govt from the previous parliament were too busy fighting between themselves for the top job that they have left the country exposed on so many fronts. Hey, their election got house prices rising rapidly and that was all many cared about. Caveat Emptor

 

The Australian way.