Landlords have turned the Aussie dream into a living nightmare

Landlords have turned the Aussie dream into a living nightmare



Nathan Davies - If you don't have inherited wealth flowing down, well...good luck with that

cont..



What the?

 

LOL.

I didn't get any inheritance or handouts from my working class single mum, and worked hard for my own money to afford any investments. So I wouldn't accept being called a bludger.

 

Greens councillor attacks ‘bludger’ landlords in push for cooler rentals

I need to find a new conspiracy theory...

 

Your middle name isn't 'Albo' perchance?

 

I bet he doesn't really hate landlords .. he is just waiting for market to crash 70% so he can start building his portfolio.

Does he not know one Greens federal senator owns 5 IPs?

 

Shhh...

 

combined with governments interfering and failing to address social housing supply.

But yes yes all the property owners fault

 

When ideologues attempt to reinterpret objective reality, aka socialism.

 

Twenty years ago I bought a house in Tasmania for around a hundred grand and some change.

It was a 120-year-old two-storey terrace home in the middle of Launceston with a big old open fireplace in the lounge room. Lovely.

At the time I was making around $30,000 a year in an entry-level journalism job.

That same house, according to real estate websites, would today fetch more than $700,000. The job I was doing at the time now pays around $50,000.

You don’t have to be Warren Buffett to see that a property increasing seven-fold in the time when wages haven’t even doubled is a huge problem should you be the type of person who, you know, likes to live in a house.

I disagree with blaming landlords for the housing situation, but the author raised some good points. It's the same story in Adelaide. Houses that were sold for 120k in the early 2000s are now being sold for 800k+. Wages have failed to keep pace.

 

so where is the money to buy RE coming from?

 

People who earn more than their competition

 

People borrowing more money.

 

No way median house price has gone up 7x in Tasmania in last 20 years. It's more like 350% increase. A $100k house 20 years ago would be $350-$400k max in today's market. Something like this in the middle of Launceston.
https://www.realestate.com.au/property-house-tas-south+launceston-139558611?sourcePage=rea:buy:srp-map&sourceElement=listing-tile

On a $110k mortgage (20 years), his monthly repayments in 2002 at 9.5% interest rate would have been $1062 per month. His salary then was $30k, about 40% of his gross income then. He failed to mention extreme mortgage stress he was under then.

On a $350k mortgage (30 years), his monthly repayments in 2022 at 3% interest rate would be $1476 per month, 36% of gross income of someone in same job today.

In addition, his wife is more likely to be employed today than 20 years ago.

The problem with real estate is that people want to be able to afford in suburbs they could afford 20 years ago instead of buying in suburbs they can afford today.

 

Interesting article, but its is a stark contrast to an article i was reading the other day...

The Generous Landlords of Perth Reduce rents by 20% Following the Mining Boom Peak - a Reflection of the Ground-Breaking 2007 Decision
June 2020

Back in 2007, recognising houses cost a lot of money and many in Perth were struggling to make ends meat, landlords of Perth collectively met up in Town Hall and resolved to progressively drop rents by 20% over the coming 13 years. Head of the Perth Landlords Action Network (PLAN), was quoted:

"this is a recognition of the power that landlords have in the australian housing market. Our historic decision today to reduce rents across the state is a deliberate decision to make lives easier for Aussie battlers, single parents, and of course, Greens voters. Its not the job of the RBA, the government, APRA, the Housing Authority of WA, or anyone else to influence or advocate for sustainable housing. This is a post we hold with pride, and we will use our full influence as an organised group to help the people of WA".

Today, in 2020, we interviewed the now chair of PLAN to reflect on the historic decision back then:

"in 2007 i bought my first place for $600,000, which was a lot of money at the time, as my salary as a starting teacher was under $50,000 and the RBA had set the reserve rate at 6.75%. I was working in a bar part time to meet outgoings. Since then the reserve rate is now around 1-2% and a starting teacher salary is $73k. My house was just valued at $540k, making it much more affordable for new home buyers. Home owners and landlords have done their bit to ensure everyone gets a fair go, so this week PLAN resolved to again start lifting rents. Over the coming 2 years we will progressively start lifting rents back to what they were 15 years ago. We hope the people of WA will understand this."

.....

Oh wait.. that was never written.

 

All of my IPs have appropriate heating/cooling, but if any tenants want better aircon, they're welcome to organise some quotes, let me approve their preferred option, then pay for it themselves.

 

Be warned, while the 2 parties are far from perfect, this sort of extreme exists in many of the pollies.

Best not let them get your vote.

Nothing good will come from anyone who actually thinks this way.

 

They're biting the hand that feeds them. Be grateful that there are landlords risking their livelihood to get rooves over people's heads.

 

So the issue was not wages, It's people with other priorities or afraid to borrow

 

Residential rents have barely risen in Melbourne in 10 years - it is more affordable to rent now in Melbourne than for about 20 years given wage growth in that time.

 

Just be grateful Bill Shorten wasn't elected with his tax wrecking balls.