PM announces landlords will have to do their bit!!

Agreed, it should have been locked down earlier. Including that disaster letting the infected cruise ship passengers roam all over Sydney. What a mess. Alot of people have been in denial.

Handling the economic side could have been simpler. Close peoples businesses, and sort some hardship money out for those who lose their income. Would have been fairer instead of playing with the rules.

I'd not even complain if they print money to finance it at this point, a bit of inflation is worth solving this.

 

To codie, If property investing was such a great idea for the investor & Australia as whole then there really shouldn't be that much of a problem, investors would have buffers & the Australian economy will bounce back
I'm not advocating for anyone in particular, just Australia, we've needed a well rounded economy for a long time & it never happened.

And yes wylie i should have said "whinging/panicking" landlords

 

Landlords don't want compensation, they want their tenants to pay rent....for the rental accommodation (service) they're using...

In no other sector or industry does the consumer get to play 'woe is me' and expect the provider to wear it. Eg. I got no money but I should just be able to have that petrol for free, or I got no money but I should be able to take those groceries from Woolworth's for free. Yet when it comes to rental accommodation, I got no money and I shouldn't have to pay rent; society: here-here.

 

The government put the idea out there.
If everyone just broke their leases & moved in with family or friends that own their own home, then landlords would still be in the same position.
But this is what I mean by how screwed the economy really is, because all anyone has invested in for God knows how long is housing..

Also the tenant is only locked into a lease that is breakable, there's no other risk. Surely when investing in houses, the investor would know it's not always safe as houses..?

 

How come Sydney and Melbourne property both went backwards in the lead up to the federal election when everyone was worried about Negative gearing getting canned, then when it didn't happen , house prices started miraculously going back up again.
It really baffles me what fellow investors have done with all the extra savings thanks to all the interest rate cuts since 2012, and the 4 rate cuts in the last 10 months.
Yet many are crying poor while the country has the lowest rates in a very long time.
The lucky ones are investors with the multiple properties, at least they can sell one and still keep the others , no need for government handouts.

 

More factors than investors going on there... US bluster economy going up, putting the sails in our sharemarket, and also the relief by serious business/liberal capitalists that the LNP suits them better. FHB getting handouts also, plus reinflated chinese buyers.

Interest rate cuts over the last 12-18 months have contributed pretty much **** all to an equation unless you are on a massive mortgage.. $200/wk maybe.. not much. Plus rents have stayed extremely stagnant as wage growth has gone nowhere.

 

Credit and sentiment had a lot to do with that as well, we know it’s been the upper end of the market and owner occupiers that has accelerated the growth post election

Can’t speak for the “lucky” investors but I’ve bought 2 in the last 18 months, P&I from day 1 with extra repayments. From my understanding it takes around 5yrs for a property to balance out and start getting easier to hold with a lot of sacrifice in the early years.

I’d suggest many of the ones “crying poor” are still in this infant investing stage and can’t afford for tenants to not pay rent.

I’m not sure why your so against that idea or find that hard to understand? Do you think all landlords are loaded?

 

On that basis:

• “Being on welfare” is “being on welfare”, you gotta take the good with the bad.
• “Being an employee” is “being an employee”, you gotta take the good with the bad.
  
• “Being a business owner” is “being a business owner”, you gotta take the good with the bad.
• “Being alive” is “being alive”, you gotta take the good with the bad.

On that basis:

• “Being on welfare” is risky, you've all just been on a bull run for a long time & got blindsided.
• “Being an employee “ is risky, you've all just been on a bull run for a long time & got blindsided.
• ”Being a business owner” is risky, you've all just been on a bull run for a long time & got blindsided.
  
• ”Being alive” is risky, you've all just been on a bull run for a long time & got blindsided.

I’m sorry if that sounds harsh to:

• Welfare recipients, but some are acting like there's a guarantee that protects their welfare payments.
• Employees, but some are acting like there's a guarantee that protects their wages/salaries.
  
• Business owners, but some are acting like there's a guarantee that protects their profits.
  
• All of us, but some are acting like there's a guarantee that protects their lives.

Geez, what a load of hogwash.

 

@kierank I cannot like that post enough. Everyone just loves to point fingers at the people who are in a different position to them.

e.g.
Someone who is not an investor, or who is an investor in a strong cashflow position.
"Oh, everyone should have a twelve month buffer, it's your fault if you haven't got tens of thousands lying around doing nothing just in case we're affected by a once in a century pandemic"

Someone who is in a secure full-time position.
"Oh, well that's just the risk of being a casual, you should really have a large cash buffer, it's your fault if you haven't got tens of thousands lying around..."

Someone who is not a small business owner.
"It's disgusting what you're doing to all your loyal employees laying them off or asking them to work for free! You should really have a large cash...."


People. Australia is world renowned for our finger pointing skills, but now is the time to come together and STOP pointing fingers. If you are in a privileged position, either through luck or intention, stop judging, and offer to help. If you are NOT in a privileged position, stop judging just the same, you may just need their help.

 

I haven't checked. To be honest it's a low priority for me at the moment. Losing money won't kill me.

 

Everything is a risk. Being a renter is a risk, buying a house is a risk. An investors risk doesn't make them less worthy of community support if needed to keep them from homelessness and financial devastation. Footballers and Artists choose to play for a living. That is a risk because when the **** his the fan their contribution to our society isn't worth much. The human race can play and be creative without them. Not being able to work is a risk. We all make life choices

 

Coronavirus Australia: Plan to hibernate Australian business. What does that mean?

Well looks like us landlords are going to get royally screwed

 

If these laws come in and one of my tenants stop paying all rates, land tax, water payments will stop. No repairs will be performed unless for my benefit. As I do not have tax withheld from any of my income I will cease paying any tax. My cash will be moved to a safer place. I am not going to contribute taxes to live in a society where I have no rights and the government can in effect seize my private property to use for it's own purposes. What will they do next, is cash in the bank safe from them.

 

Quote..
“There will be landlords who will suffer. The banks will be having to make arrangements with them. Whether councils are involved in providing waivers on rates, things of that nature that, will be something states work through,” he said.

Makes me wonder as the brain cannot throw away valuable information about rewards when are all the people who were voted in to run this great country are also going to take a 25 plus percent pay cut like everyone else ..

 

That's what happens in wartime. And this is a quasi wartime situation.

 

Whilst The Fed can make these statements the state's are the ones making policies...checkout the other thread with Tasmanian policy and act policies that were released yesterday re recovery of unpaid rent at end of lease and pause on evictions or notice to leave june 2020...

Don't panic peoples - if unemployment is 10 - 15% that is an 85% chance that your tenant will still have a job!

 

Tenants are losing their jobs, in the absence of law changes to prevent evictions (as in Tas), the options are:
1. Evict the tenant. High probability of them then sharing with family. One more rental property on the market with very weak demand. Demand will get lower with more evictions and people voluntarily moving to live with family to survive. Air BNB now coming on rental market as tourism has collapsed so more supply. Your property may be empty or can only be rented out at a much lower rent.
2. Negotiate lower rent; this could be either an actual lower rent or an agreement to defer some of the rent. You receive some money.

Option 2 may be the best option.

 

Just remember that all though unemployment may reach 10-15%

potentially 50% (I don’t know the real figure) will be stood down or out of work experiencing serious financial strain.

Unless your in medical or essential services, this thing won’t discriminate and all though it won’t show in unemployment as technically you haven’t “lost” your job. In some cases it means the same thing

 

Yep good point..in most cases i reckon the damage can at least be mitigated somewhat by

1).at worst negotiating a temporary decrease to 50% rent which will be covered by govt payments
2) use the ATO "variation to with holding tax "application to get your tax refund in advance fortnightly to improve cash flow based on reduced rent

Ain't perfect in all cases but will minimise the pain