If you were a tenant......

Discussion in 'Property Market Economics' started by skater, 5th Apr, 2020.

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  1. skater

    skater Well-Known Member

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    I'm going to propose a hypothetical situation. Please comment below what you would do, if this were your current situation.

    Family of two kids & two working adults. You are a respectable couple, who pay your debts and always try to do the right thing. You are renting a very nice unit in a desirable location. The rent is $800pw. You have little savings and you also have various other debts that need to be paid. Car, Credit Card, Personal Loan. Your kids are in private schools.

    All of a sudden life throws you a curve ball. We have a pandemic & both of you lose your jobs. The school has suspended all tuition fees, you've spoken to the bank in regards to the Credit Card & the Personal Loan & they have provided some relief. You've sold the expensive car & bought a much cheaper one for cash, as you need to have a car. This leaves you with rent that is way too much for someone in your new scenario. What would you do?
     
  2. Sackie

    Sackie Well-Known Member Premium Member

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    Two options.

    1. Try to work out an agreement with my LL which not only looks after my needs but that too of the LL and their obligations. No entitlement ****.

    2. Move and rent something cheaper.

    Also goes without saying, do a strict budget to cut down as much as possible. Trim any and all spending which is non essential.
     
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  3. skater

    skater Well-Known Member

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    Yep, move, would be my choice, because even if my LL was in a position to reduce my rent to half, when this is all over, there is no guarantee that both myself & my partner would be able to get back into the workforce immediately.
     
  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    To be fair, moving house is not a trivial exercise in a pandemic though.
     
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  5. Sackie

    Sackie Well-Known Member Premium Member

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    Agree. Also, most renters at the best of times don't have that much saved. So after 6 months of deals, if any cash builds up for that time period it's highly unlikely you'll ( as a LL) ever see it again.

    LLs are making adjustments and expecting turbulent times. So too should renters. We ALL need to make sacrifices.
     
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  6. Sackie

    Sackie Well-Known Member Premium Member

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    Are there any easy options in a pandemic though?
     
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  7. Owlet

    Owlet Well-Known Member

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    I’m not sure about the ‘respectable’ label - can be subjective.

    I would look at accommodation options that I could afford, break lease and move. In the meantime I would use our JobKeeper payments to pay for shelter and food. I would look at both of us accessing our super so I could wipe our personal loan and credit cards debts - this would relieve a lot of financial pressure and stress. Any remaining super I would put aside for the kids education and our healthcare. I would also draw up a budget and adjust to our new reality - I may need to cancel the Spotify and Netflix subscriptions, change phone plans etc and tighten the belt. I would also focus on my kids and quality time with them doing the simple things - home made food, games and craft using what can be found in the house, a walk with the kids, reading with them etc.
     
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  8. Simon Hampel

    Simon Hampel Founder Staff Member

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    No, but expecting someone to move out of their house is definitely not going to get a lot of sympathy.
     
  9. Sackie

    Sackie Well-Known Member Premium Member

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    I hear ya. I just think we all need to make tough decisions.

    Also when this is all over, id be more than happy to pay a Corona levy to help our country. I think every Australian needs to.
     
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  10. wylie

    wylie Moderator Staff Member

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    I started my reply, but it got too long with too many "what if" questions. Moving would meaning breaking a lease, and I could end up paying for two places at the same time.

    Ultimately, when things get tough, most people (renters and home owners) cut back on everything to ensure the roof over their head is paid for.
     
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  11. Islay

    Islay Well-Known Member

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    I would move to somewhere cheaper.
     
  12. skater

    skater Well-Known Member

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    This is true.....but it is allowed. Desperate times call for desperate measures & my sense of survival would cut in & tell me that moving was the only option. I acknowledge that I may not feel the same as others in the same situation, hence why I asked the question in the first place.
     
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  13. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member

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    Apply to Centrelink, get something. You'd still be behind on the rent though. When the pandemic is over, move house to something cheaper, likely leaving behind a significant amount owning to the previous landlord. Hopefully their insurnace will cover it. The landlord unlikely to ever recover it from the tenant that owes them money, but they did get something from Centrelink in the meantime.
     
  14. Owlet

    Owlet Well-Known Member

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    The hypothetical is ‘as tenant what would you do?’
     
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  15. skater

    skater Well-Known Member

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    This is true. My meaning in this instance is that I'm not one to 'game' the system. If I have money, even if not all of it, to pay my rent, I will. I wouldn't be looking to pay no rent.
     
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  16. skater

    skater Well-Known Member

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    This is correct. If you were the tenant, faced with these circumstances.
     
  17. Simon Hampel

    Simon Hampel Founder Staff Member

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    What I would do and what I think most tenants would do are two very different things.
     
  18. skater

    skater Well-Known Member

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    Very true.
     
  19. Sackie

    Sackie Well-Known Member Premium Member

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    If you were the tenant, what would you do?
     
  20. Owlet

    Owlet Well-Known Member

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    If I wanted to use this situation to my family’s advantage and not act respectfully, my response would be quite different.