Non property owners complaining about landlords

Was listening to a friend on my FB list posting about property investors are greedy and how the government needs to remove negative gearing, get rid of capitals gains discounts, and that the rent in Sydney is too damn high and his landlord is ripping him off at $490pw.

I posted a few screen shots of "reality calculations" in an excel spreadsheet

eg
100% property cost + purchase costs/stamp duty/legal expenses (for his 2br Sydney apartment based on other local sales around $700k)
x
current mortgage rates (used 4.5%)
+
Annual expenses including Rates/Strata/Water/Insurance + avg repairs pa of $1k

Which means his current apartment actually costs $700pw and that his landlord collecting only $490pw is actually losing $210pw

(ignoring probably wouldn't have 100% mortgage and didn't purchase property "yesterday at current rate etc, but very accurate calculations apart from that).

Australian renters have never had it better and are actually benefitting from Australian tax policies in a big way.

When I pointed out that his apartment actually cost $700pw his response was.....in this ******* no way I'd live somewhere else....im not stupid enough to pay that much.

.....sigh.

 

You get to see so many misconceptions on facebook that it's not even funny. Almost like in a market research gig, it doesn't really capture a good portion of the market as really intelligent people are too busy and the incentives are not enough to be worth their time ie one mature participant reckoned current interest rates should be 2% from the banks when traditional rates avg 6 to 7%

 

If the government were to get rid of these so called incentives for investor's where would the renters live ?
Not saying that landlord's are doing tenants a favour either.

Sadly there seems to be a growing percentage of our population who lack the drive and attitude to become home owners.

Image if the plug was pulled over 5 years on all investment incentives, the majority of landlords would slowly sell of over the five year's, all that would change is that renting would become harder and cost more !

 

I feel absolutely no need to justify what I do. I just do it because I want to do it. You need no ones permission and they can have whatever view point they want.

The reality is that the view point exists only in their mind and they can't stop you from investing in property or anything else!

They don't invest because they see a problem with it - all good.

They can keep their limiting opinions, I will keep my properties, business, money and lifestyle.

It does not bother me one single bit that people have those view points.

The only thing I have to say is hmmmmm that's very interesting! Good luck with that attitude, hope it works for you. Goodbye

 

It's on FB - you can just block them and they can't see what you are posting. You can't do that on this forum, you can ignore people but it's a one way thing. They can still see and comment on your posts. Even years later some trolls are still going and can't seem to let go, but FB is easy - block and they are gone.

 

Is that like sticking your head in the sand?

 

I'm quite sure if you block them they won't be able to see your profile nor your posts. Not sure about existing posts tho

 

I'm quite sure if you block them they won't be able to see your profile nor your posts. Not sure about existing posts tho

 

I think of it like valuing yourself enough to walk away from people and situations that don't fit your purpose.

You are not the arse.hole whisperer, you don't have a job to please idiots.

 

On FB they can't see anything - unless they are logged off.

On PC (here), they can still see and comment on all your posts - you just don't get to see that they are still trolling. You can't block people here, you can only block yourself from them.

 

Great work Dean. Would you now please forward the same spreadsheet to every media outlet in the country, particularly the trashy emotive ones like Sunrise and The Project. Even the ABC, their journalists don't seem to be able to do basic maths either.

 

I suspect the problem is more their mentality - they have a negative attitude toward the subject so confirmation bias only lets them process the problems. They are mentally incapable of processing the whole topic objectively.

 

Most journos are young, on small salaries and in Sydney......

I wonder how they personally feel about housing affordability?

Just sayin...

 

Good points, @hammer.

On the other hand, these presenters aren't so young that they couldn't have bought a modest unit five years ago to get themselves onto the ladder. You know, before Sydney prices doubled to what they are today. Plenty of them appear to be about 40ish.

Wasn't Dean discussing the cost of rentals?

 

You're right but the presenters are a bit like ducks. You only see the fine plumage and calm expression on top of the water. Under the water are usually a team of young guns paddling like crazy to get the stories and research ready for the presenter.

 

What nonsense is this?

That landlord "losing" $210 per week ($10920 per year) is negatively gearing it to reduce taxable income. This negative gearing is costing us as a society about $5-6 billion a year.

Meanwhile, their capital value is increasing at a far higher rate than their "losses" and when it comes time to sell will be taxed very lightly thanks to the CGT discount introduced by John Howard.

This is the entire core of why people negatively gear and how it interacts with CGT discount to encourage property speculation.

And oh, the joke that renters are somehow better off under this system because they're getting their rent subsidized... what a load of garbage.

Rent is charged at market rates. That's how it works. If that landlord could get $700 per week they would. They're not charging $490 per week out of the goodness of their hearts or because some of their $210 per week loss is subsidized by negative gearing.

If we wiped out negative gearing tomorrow, the rent of that property doesn't magically jump to $700 per week.

I get that this is a forum for property investment but seriously, you need to be able to understand and explain why people hold the positions they do around negative gearing, the CGT discount and the affects on housing affordability even if you don't agree with those positions.

If you are so blinded then you risk losing it all as you go blithely along ignoring the reality around you.

 

So... Emza... In your tax returns, (assuming you pay tax) do you take any/all allowable deductions? If so, then you are no better than any property investor and quite frankly totally hypocritical. Why not look at ALL INVESTING? including the stock market, which also allows negative gearing? Why are you so down on property investors?

 

My friend had the same complaints to me recently. She had decided years ago renting was cheaper than owning as she wouldn't need to pay for rates and maintenance on a property so she sold up but now she'd like to own a home again and stop renting. I didn't bother to reply but my thoughts were, "Where would you be living right now if we got rid of all the investors?" Even if we got rid of half the investors her rent would be double and she'd be paying close to what she thought was unaffordable previously when she owned so shouldn't she be grateful to investors?