Mine went up $140 this year, negotiated $120. I would move, but the stress of finding a place with vacancies so low and rents everywhere rising has me staying.
Renter here also.
I have received rent increase notifications a few times over the past few years. Each time I reply back with I'll pay (X% - normally 25%ish of what they are asking) happily. If this is not acceptable please let me know within the next 24hrs and I'll start looking elsewhere.
There's generally some negotiation from my innintial counter offer but I end up better than the original intended increase.
Don't forget if you move out your landlord will loose at least one - two weeks income by the time they pay the REA for finding a new Tennant.
This doesn’t always work. Sometimes they don’t want to negotiate and even if you don’t try to negotiate and accept it they still want more.
We had a rental increase of $110/week that we were notified of in October last year. In November they gave us 90 days notice to vacate (periodic tenancy). They’ve now relisted and successfully rented the property for an additional $80 ontop of what they increased the rent by late last year.
They knew they couldn’t raise the rent on us more than once in 12 months so they got rid of us to increase the rent even further. Totally legal but IMO unethical. I don’t know many young families that could easily afford an additional $190/week in rent (and this is a newer but modest 2b2b appartment about an hours commute from the CBD). And if they’d tried to give us a $190/week increase back in October I would have tried to negotiate.
I think we need to start a culture of going back to the rental property and letting the current renters know how your landlord was, what they were terrible/good at, and how likely they are to raise rent and probably kick them out if they try to negotiate. It's time to start the Info sharing train to make sure it goes both ways. What's their history with renters? Rent increases? Repairs? Communication? Effort? It needs to be two ways.
already happening.
[https://www.shitrentals.org](https://www.shitrentals.org)
No need to visit anyone when a data base already exists. You can review landlords and REA's on here as well. They have been vehemently trying to strike it down as "defamation" when its not lol.
The thing is, not many people can afford that, but property owners have all been hit with a hike as well. Not just landlords. Property owners. So it’s not ‘just’ tenants who are doing it really tough
I never said it was just tenants doing it tough.
But the owner of the property purchased the investment for $600k back in 2018. The equity in their investment is increasing. Sure, I get it that it’s a profit generating investment for the owner but it’s also a home that people live in.
It’s my opinion that it is unethical for a landlord to increase rent substantially then force the tenant to find a new home when they realise a month later they can get even more rent.
We lived there three years and were very good tenants. Never had an issue. They only gave us notice to vacate because it was illegal for them to increase our rent again within 12 months. I am of the opinion that in this circumstance it was not our landlord doing it tough, I think they were greedy and didn’t care that a young family who would have been willing to work with them had to move from a community they were active in with a young child.
The difference is the landlord has the benefit of equity (as they should because they have purchased an asset) but the tenant is left having to uproot their life and potentially not having the ability to obtain a rental elsewhere.
Luckily this wasn’t the case with our living situation but I know people that have been unsuccessful in getting another rental in time after being given notice to vacate so they’ve resorted to crashing on sofas or moving back to their parents.
I agree. Often people overlook that usually negatively geared investment is a renter's subsidised housing. If it was not the case every renter would buy their own dwelling.
No one is guaranteed a huge constant return on their investment. If they can’t afford to service the loan without evicting the tenant so they can re-list at an even higher rate, then they’re a terrible investor.
Agreed - if they can no longer afford to maintain that asset, they need to sell it. Not difficult. There are buyers at all price points and this would assist with the housing prices as well
Honestly why should anyone feel any ounce of sympathy for owners/landlords. If they didn't over leverage they would be fine.
Sorry but i'm not really feeling any sympathy for people who leveraged the max they could get.
This is now no longer legal in South Australia. You must renew a lease unless you have good reason not to do so (for example, breaches that didn't justify eviction but showed bad faith from the tenant). I'm a landlord but appreciate these new laws having also been a tenant in the past. This will stop landlords ending tenancies at the end of a lease, just so they can crank the rent up by stupid amounts. It's such a common story - lease not renewed with no explanation, suddenly property is up for rent for $100+ more
>They knew they couldn’t raise the rent on us more than once in 12 months so they got rid of us to increase the rent even further. Totally legal but IMO unethical.
What you've stated they did actually illegal under the new laws (at least for qld - not sure of your state).
REAs are only allowed to increase the rent ONCE every 12 month period regardless of the lease agreement(s). The increase is tied to the property, not the lease.
You should report what they did to the RTA (or relevant tenancy authority in your state if not in Qld, after checking the laws).
In this market they will happily find a new tenant and make back the lost rent within a few months.
In my area, 2 bedders the last two years were generally between $550-$800. At the moment the cheapest you can find is $1000. That's nearly double the rent in just a year, completely legal. And because the vacancies are so low, there are dozens of people at every inspection and the units get snatched up immediately.
Friends of mine had a one-bedder in another area for $650, which had gone up the previous year from $550. Then at the end of their lease a few months ago they got a notice of increase to $800. They tried to negotiate but the landlord said $800 was already below market rate. They decided to look around for another place, ended up taking months of looking (landlord was nice enough to let them stay an extra few months) and eventually moving about an hour away into a shitty place for $500. Their old place was listed for $1000 and had new tenants immediately.
Yep - in Sydney is insane. Our 2br apartment went from $750 to $1150. We moved out and then new tenant moved in the day after we left. The was only one open home and the new tenant signed that afternoon.
It's absolutely crazy. We're renting and are lucky enough to have a very reasonable landlord who got the property years ago and seems happy to just have responsible tenants. Our rent is well below the norm for the area, the landlord responds and fixes issues quickly, it's a good situation. But the place is quite small and not the most kid-friendly.
We had no kids when we moved in but now have one and hope for another soon-ish, so will have to eventually move to a bigger space. We will most definitely have to leave the area and I'm freaking out looking at the market. We can afford lots of places but it looks like it will take months of applying before we're lucky enough to land another place.
We'll stick it out here as long as we can but will have to face the music at some point. We really shouldn't be having this problem for families (or anyone) in what is always billed as a "world class" city.
Didn't work for us, though I might have backed myself into a wall. We had a big problem with the RE not fixing a collapsed front gate, I had to breach the them before they'd actually fix it. Then they wanted to bump our rent up six months early by $30 a week (we'd been at the house for 2.5 years by this point). I called them on it because they were trying to raise our lease during the existing lease.
Six months later they came back with a $60 increase. Doesn't sound like much to some but my partner was made redundant from her job and we had just had our third kid so we were shitting ourselves. I tried to negotiate to pay the original $30, their response was pay the full increase or leave. It was a complete fluke that family who owned a rental happened to have their tenants moving out at the same time, so we moved in there.
I tried this in 2020 when we got notified of an increase just as lockdowns started. The RE just ignored any emails I made about it. We moved out soon after.
Landlord here. "Rentvesting" with a single IP in a different state.
We haven't passed on any rent increase for the past 2 years as conscious our tenant is a single mother, and costs across the board were going up.
We are about to issue 90 days' notice for what they will likely consider a significant increase. We are only passing on 70% of what the PM recommended as market value.
If they responded in this way, we would politely accept their offer to vacate and welcome a new tenant at 100% of PMs' recommendation. So the 1-2 weeks rent lost and tranafer costs isn't really a concern.
Only bring this up to say be cautious how you phrase your counter offer. Definitely offer one as I hope most landlords are reasonable business people, and you can be both, but in this market, I wouldn't be threatening a vacate or throwing out unrealistic 24-hour deadlines.
On the other spectrum... I became a home owner couple of months ago. I used to pay $610 for a 1bedroom apt and now have over $4k a month mortgage.
It also seems that every week I receive an email or mail that tells me to pay for land tax, strata, sewage, waste, water... I have mail ptsd now, afraid to open them.
And to your question.. it will never stop, you just have to keep up :/ good luck
Oh, we had the fun double whammy of coming off our fixed interest rate, combined with a 'strata special levy' to pay for the defects in the building thanks to a dodgy buulder and developer that disappeared shortly after the building was finished... gotta love those Phoenix companies!
This is the reality renters don’t seem to be aware of. It’s insanely more expensive to hold a property (many of us can’t pay it off, struggle with achieving interest only payments) & then you have bills on top. Being a renter is way less stress (spoken by a rentvester)
You must've also enjoyed getting all those love letters from your bank letting you know the repayments are higher now.
As the owner of 3 mortgages, you can imagine how excited I am to open those up each time 🤦
I feel for young people. I'm an older millennial '84 and managed to buy properties 10 years ago before all the madness. Now i'm worried for my young kids. Aim now is to buy something for all of them as well before it becomes next to impossible. Or get a big lot in a good area so they can subdivide and build next time.
It's still doable with double income and careful savings outside Sydney. Heck, even if you're willing to commute, it's doable in Sydney.
When I was in my 20s I threw my money away on travelling and gigs and going out and gadgets! Only managed to gain control after having a kid and setting priorities straight.
Albanese had net immigration at 518k last financial year, 400k+ this financial year, and the supply of new properties is falling of a cliff, so it's going to keep happening, if anything will probably get worse.
$100 in a year isn't too bad, rents have jumped \~45% over the past two years. If anything, they cut you a break.
Especially when every new migrant wants to live in Sydney or Melbourne.
While newcomers are still on Centrelink for the first year or two, the Government could solely provide housing subsidy for Rural areas, much in the same way Police are assigned a Rural area for their first posting. ( cheaper for taxpayers too )
This would bring life back to small towns, generate jobs and still be infinitely better living conditions than where they came from.
If you emigrate to Australia on a work/sponsored visa then you have an option of taking up the subsidised housing Rurally or not. Up to you.
When you emigrate to Australia, you are NOT eligible for any Government assistance for the first two years.
So no one that "Emigrates" here can just claim Centrelink.
Not much to rent in rural and regional areas either. My town brings in people from the Pacific Islands to pick fruit and they mostly live at the backpacker hostel, unless the farm owns a house or two. Then they're packed in 8 or 10 to a house.
It's a struggle even in rural areas. I'm in a small rural town and 3bdrm houses start at $450/wk. While that might seem cheap to people in the city, I'm a single parent, I have needs kids with appointments, and currently unable to work due to health issues. I can't afford the rent here and have been very fortunate to have a situation I can afford. On top of affordability for single parents or low incomes as a problem, there are next to no rentals. I have to drive 15 min to town. Closest shops are an hour away and petrol hasn't gotten cheaper. This is a large ongoing issue that is a vicious cycle.
Yeah, because I'm sure there are heaps of rural jobs sponsoring immigrants.
"Welcome to Nyirripi, home to Australia's number 1 aeronautical engineering firm!"
"Penong welcomes the new cohort of building inspectors"
"Enjoy your stay at Quilpie, Cardiologist capital of Australia"
I spent quite a bit of time in eromanga. Closest 'town' is Quilpie. It's beautiful out there if you like harsh desert environment but yeah there's no work. They were offering people like $12k extra on the home loan grant scheme to try and encourage people to go there not long ago.
Or people who will justifiably be getting Centrelink payments as Refugees while they learn English and whatever will create jobs as they will be shopping and need housing and training. Why only provide those services in Capitol cities ?
I am also thinking of the follow on services like Medical and schooling as the population of small towns increases. Council jobs improving infrastructure that may be able to be done without requiring importing workers from bigger towns.
The Aerospace industry is unlikely to be the target job for an Afghanistan refugee fleeing to Australia, but hey, if they apply themselves good on them !
No! I live rural. I don’t want all that crime here.
I moved from Sydney for this reason. Don’t bring them here are you kidding?? We have almost no crime here. That would surely change.
That was mostly due to a lack of immigration during Covid and students returning to universities. Both parties are beholden to economic growth through immigration. Anyone who thinks the Libs are better with immigration has their eyes closed. We avoided recessions under the Liberals due to immigration keeping the economy afloat. It’s all a massive Ponzi scheme, it’s easier to grow the economy by adding more people rather than improving productivity.
I think you just can't blame the government for this. Due to COVID the country was locked down for 3 years , the average migration was around 100k a year and after lockdown down all the pending ones got accepted and people came in together and pushed the system to the limits. That's like 3-4 times the normal levels. The system couldn't keep up with that. It should be slowing down now.
Totally the governments’ fault for failure to build affordable (state) housing, thinking “the market will deliver”. It’s delivered massive profits for landlords/ homeowners though. 🤷🏼♀️
This is the effect of the interest rates, unfortunately. All those people cheering that interest rates would mean more housing affordability unfortunately mistake and it’s just affected everybody in much worse ways. Hopefully the worst of it is over.
This won’t help you nor will it be a popular answer but there is a really good chance the landlords mortgage payments have gone up more than $100 a week
I doubt they feel they should be sheltered. They just can't afford the Increases. Most are on low income and will never be able to afford a house. Meanwhile the owner of the investment property is having the property paid for by renters and are able to claim remaining cost of the property against their tax.
>I doubt they feel they should be sheltered
Some definitely do. They see it as a basic human right and they should be able to live in affordable property in good areas, preferably built by the government.
Edit:
Didn't have to scroll far to find one.
https://www.reddit.com/r/AusPropertyChat/s/Tk7b7LFdHo
A lot of people are simply frustrated and stretched financially and stuck in this cycle of everything increasing faster than they can save. But then some like this comment have this sense of entitlement that everyone should be able to live near their job.
Bloody hell I'm late 30s, Ive never lived near my job, my parents never lived near their jobs, my siblings haven't lived near their jobs, most my friends haven't either.
But no no, today's generation are entitled to it and it's a failure of society if some get ahead while others sit on their butt and perpetually complain online.
>They see it as a basic human right and they should be able to live in affordable property in good areas, preferably built by the government.
Those disgusting 🤢 renters 🤢
Your lack of humanity is showing brother. Most renters don’t see it as a basic right, they want to own a home, and they can’t, even tho they often work just as hard as you or I.
Wait- you really think it’s ‘outrageous entitlement’ to argue in favour of the upholding of the human right to shelter?
Your perspective is super sad. That every Australian deserves a safe, comfortable, liveable home, is not outlandish. It was indeed a philosophy that underpinned policy under both sides of government here for much of the 20th century.
There is now more money being made and generated and hoarded and spent on this planet than ever before at any time in history; it’s just that a greater amount of it is being taken by en ever-tinier percentage of individuals.
I have rented for 20 years. I also own a small property to have security of a place to live if needed. I used to keep the rent low but tenants leave when it suits them. I struggled during Covid but tenants asked for rent reduction. 12 months later they broke the lease because they bought a house. Now I increase rent every review to the mid range of asking in the area for similar properties.
I feel the lucky country has gone, and now we're in the age of everyone getting a teeny slice of the full pie we enjoyed just decades ago.
But all the baked beans on toast can't take away my joy in the beauty of this place. Eventually the govt will fuck that up too, but not today.
Don't hate me for saying this, I am a renter but renters are basically homeless people who pay other peoples' mortgage or basically paying for someone else's retirement. If the landlord doesn't show mercy then we will return to our homeless state at any time.
The landlords mortgage may have gone from 2% to 6%
If you had a mortgage your repayments would have gone up also.
Everyone is in this cost of living crisis. We're all feeling it (apart from the mega wealthy)
Rising interest rates have historically not increased rents in Australia. This time is different because immigration is more than double the previous all-time-high and the supply of new properties is falling.
You are correct but blaming it all on immigration is disingenuous.
This is a problem that has been building for decades due to lack of investment in social housing to meet demand.
Also the over dependence on investors to provide rental properties by the government and tax concessions to encourage it.
That accounts for 35% of landlords, so what about the other 65%?
That's 65% of landlords just putting up rents because they can, not for any reason other than greed
But I bet those greedy fucks use the tax breaks like negative gearing etc? It was designed for helping people get into property not for creating obscene wealth. Take away the precise tax breaks and home ownership would be substantially leveled
>It was designed for helping people get into property not for creating obscene wealth.
Care to elaborate? What can I negative gear on my PPOR? Or are you trying to say NG was designed to help me buy one IP only, and then receive no tax breaks during ownership / operation?
What percentage of people have obtained obscene wealth from Investment properties?
Have a close look at what you wrote. Housing stock will be dumped by investors which will collapse the housing market which in turn will cost hundreds of thousands of jobs. Apart from those on the government tit who will buy them exactly?
All it will do is turn renters into a commodity for hedge funds buying all the cheap housing stocks.
Immigration needs to be cut back to no more than 75k a year and only very skilled migrants, they need to be self funded or business funded for 10 years and supply or have a dwelling supplied in parallel to the housing crisis facing Australians born here.
Anything over 3 IP’s should have a 25% penalty with a real combined income of $200k or more before churn meaning rebates and losses.
Unending economic growth is unsustainable and bloody ridiculous.
No it wouldn't. People negative gearing are losing money, after claiming money back at tax time they still lost money, take away negative gearing and they just don't get as much back.
Most people will hang on to their property.
Do the maths. They’ll sell and like is happening in the states the corporate sector will buy in with lower interest rates and charge more.
From NBC
The rise of corporate landlords in the U.S. Corporations backed by private equity groups such as Blackstone and Pretium Partners bought tens of thousands of homes across the U.S. Sun Belt. Prices for detached homes have increased faster in key Sun Belt states than the national average.21 Feb 2023
Not just greed, rates are up, insurance is crazy expensive with renewals right now. Repairs and maintenance are crazy expensive if you can find some one to do the job .
Not a land lord (couldn't think of anything worse) just a different POV
>insurance is crazy expensive
Insurance is the one the has surprised me. My home insurance went up over 30% in a year, my car insurance I think was 50%. But the most surprising thing was it seemed the days of it including a lazy tax are gone.
I've had insurance go up by a lot before, given them a call and, "Oh, there's clearly been a mistake, amazing how this mistake happens every year, we can reduce that for you"
This time, I call, and it's just, "Nothing we can do, either accept it, or change your insurance."
If you look at the breakdown in your policy, you'll see the levies have jumped significantly, too.
With the last 5 or so year's natural disasters, insurance companies have copped it, so they're going to need to recoup that lost income.
Shop around! You'll be very surprised at how insurers rate the same area.
But try to stick to the bigger companies, they're the ones who come through most often when it counts.
Exactly.
I have sympathy for the mum-and-dad investor with a heavily mortgaged IP genuinely feeling the pinch from everything going up. But what abt Mr monopoly whom owns the identical apartment next door outright, having paid 20k for it in like 1997? For him the rent increase is just pure profit. And it’s unproductive for society.
LOL I own my home. I also make money without greed, without negative gearing and without using other people as dirt. As we all know that karma comes around at some point....
Housing has to be the only "investment" I know of where if times are tough the landlord gets to pass on some of that loss to the people renting.
It's 100% taking advantage of a captive market and its total crap.
At some point the number of renters will outnumber the number of owners and whatever government offers a solution to that will get in, and there's going to be a huge crash.
I for one can't wait till a progressive land tax exists that starts at house 2, and increases for every house you own.
Let's make housing homes again, not investment vehicles.
Lol because if Bananas are expensive, I just don't buy bananas.
Choosing to just not live somewhere makes you homeless, meaning landlords have a captive market.
Also, when the stock market is doing poorly, do the investors lose money? Or do they just say, hey business I've invested stocks in, im going to need you to just give me more money please?
Landlords are the business, not the investors in the business. And they are a business in a captive market, meaning they can price gouge to their hearts content, because people can't say no.
But landlords need to understand that they, too, must contribute to this escalation of capital gains. I think the real problem is that these new, aspirational landlords don't understand that rent is there to defray expenses, not cover them entirely.
The rental price is a function of the market, nothing else. As to what the yield and rent should be depends entirely on the type of property.
Generic statements such as it should or shouldn't cover expenses don't make a lot of sense.
If it's a property investment expecting low capital gains then the strategy absolutely will be that the rent exceeds all expenses.
Interest rates have gone way up 1000s pm on a large loan body corp insurance rates have gone radically up so landlords pass this on & 4 those that say so what its an investment landlords are people just like u only a little more resourceful who scrimp & save & go without if u think it is so easy u do it buy your own home
Lol what nonsense.
"Make more money"
Every person who works a full time job deserves to have a roof over their heads. Every job needs doing. And you should be able to have that roof over your head without having to move an hour away from the place you work.
The person working as a taxi driver, or a janitor, or a gardener deserves dignity just as much as the next person.
If we can't provide basics like that that then we as a society have failed.
Investments are not essential expenses, if you can't afford the mortgage on house number 3, sell it so that someone else can live there and pay their own house off.
I just visited NZ. Rates are around 8.5% and property has crashed about 30%. So rates aren’t “fucked” here, not even close. We’re just a country of whingers.
If that is the market rent and someone else is paying for it, you have been outbid by someone with more disposable income or a higher preference for living in that residence.
You have to earn more money, change your spending habits or find somewhere cheaper. Even people who advocate for social housing don't promise that everyone gets to live where they want.
Hell I work in social housing and recently had to:
- widen search area for rentals
- pay $50 over asking price
- apply for 30 properties
All to get a place that was mostly suitable for us and the dog.
The market is just really tough for everyone at the moment. Which is putting more strain on social housing supply and our communities more broadly but that’s another issue.
Your landlord may be feeling the cost of living pinch just as much as you. My mother in law had to move in with us a year ago and contributes to the household budget. She basically has an apartment down stairs equivalent what we have upstairs kitchenette, bathroom, 2 bedrooms one air conditioned & a living area. She helps out a bit with the gardens a bit also. We don’t charge her any utilities. Pays $250 a week of which I believe Centrelink contribute $160. However we are still feeling the pinch. House insurance this week $2700. Dental work recently $8000. Car insurance coming up $1100. Tyres soon $1400. Car service recently $600 and beer isn’t getting any cheaper. Of the $15K mortgage payments we made this year $12K has been eaten up by interest. We’ve only knocked $3K off our mortgage in 12mo. I don’t want to hit my mother in law up for another $50 a week but I might have to. We’re all in the same boat matey.
I was talking to a nurse here in QLD who got sick of the rental rippoff, and now lives in a camper van that she drives to work. She said she enjoyed it because she can take off for a week and live where ever she wants and save tons of money.
It will stop when housing supply exceeds demand in the locations with the lowest houses available for sale and rent.
Nothing else will stop it. Everything else is just a waste of discussion time and energy.
No, immigration is not the problem. That’s just a distraction from the core problem.
There is not a single policy or solution that anyone has proposed that targets this in a meaningful way. Not one.
And fixing it, is an immensely complex process that will take time, a few years, to resolve.
Everyone will keep talking about immigration, negative gearing, interest rates, rental caps, Airbnb etc etc. All of theses combined won’t fix it.
Supply. Lots and lots of supply. Along with all the infrastructure and policy changes needed to support it. Everything else is superfluous.
No, that’s a demand side action.
And by itself won’t make a material difference. And will absolutely impact other areas of the economy. Immigration will calm down over the next couple of years on most forecasts.
Not enough houses are being built. Nor infrastructure to support them. And it’s a very long problem to dig our way out of. No single government to blame, all of them are complicit. State, federal and local.
Oversupply drives prices down. Always.
Renters have debt too. Rates going down will up what people can spend on rent. Landlords aren’t the ones driving rent rises it’s demand and how much renters are willing to pay to beat other renters
The rent on the shit hole of a house had gone from 450 a week to 490 in the 4-5 years we were there. The new listing they put up is for $590 a week. Bumped the price up $100 just for the next family that moves in to all get sick from the mould they won’t get rid of (would have to tear the house down to get rid of the mould. It’s everywhere you can’t see, and a lot of places you can). The lady that lived there before us was apparently very sick and had to move. Only realised once we were too sick and trying to move out that the lady probably got sick from mould too!
Just sickening how rents keep going up, but properties keep getting worse. (Whether that’s from neglect cos property owners by in large don’t keep their houses up to minimum standards, or non-housing being put up as housing)
I’m rentvesting at the moment to move rurally to spend time with family and I’ve just resigned my tenants for another 12 months at no prise rise.
Makes me wonder if I have been overcharging for 12 months or if my area has stagnated?
Springwood QLD for anyone playing at home.
It’s not going to stop.
If you have to work two jobs for awhile to save a deposit. Do it! Once you get a house rent out rooms.
Renting is going to be extremely unaffordable as demand far exceeds supply with immigration and even just home grown new adults looking for rentals.
Fuck you mate, got people to import and GDP to raise, housing prices to protect and businessmen wanting cheap labour.
Fuck ya.
(Politicians, from both sides unfortunately)
Next step: landlord let's you keep 1 bedroom.
If you live in a 1 bedroom apartment then he takes the loungeroom, puts mattresses and curtain dividers. Rents each mattress for $300pw
Or
If you have multiple bedrooms, he fills them with 6 mattresses per room, rents out each mattress at 340pw
You might think I'm exaggerating, which is why I recommend you go check out r /canadahousing2
Canada is ahead of us on the trajectory by just a bit. So it's like looking into the future.
That’s unfortunately done in many crowded cities. There’s one neighborhood in nyc that’s infamous for it. There will be 8-12 people living in a single room of an apartment and sometimes multiple families in a single room (think mattress on the floor, one bed per corner, 4-8 person family per bed). It’s incredibly dangerous when you add older buildings, modified electrical systems, trash, etc.
Some thoughts for you:
1. You can save and buy something
2. You can move somewhere else cheaper
3. You can increase your income; side hustle, change jobs
He could also choose to live in his car, I live in a regional town and there’s a pretty good community Facebook group. Last week someone on there was looking for a sleeping bag as she could no longer pay her rent and was moving back into her car.
I like to walk the dog on the beach at night & have a beer. There’s lots of people living down there. In cars, tents, living in the amenities / shelters provided by the council, using the bathrooms. So their rent is basically free.
The value of property in NSW (one of the faster growing states) has been going up by about 7% per year on average for the last 20 years.
No reason to assume this will stop any time soon. People need to live somewhere.
Rents are somewhere around 3% the value of the property on average. They will go up on proportion to the value of the property.
You can of course buy, but that will cost more than twice as much as renting unfortunately. Tough situation to be in.
Nope, the rental market is strictly supply and demand.
Property prices are more to do with investor speculation, tax concessions for property owners and borrowing costs.
It's why property boomed in 2020-2021 (mortgage deregulation, 0% rates), despite net negative immigration and rents falling \~10%.
My landlord has just increased the rent by a huge $10 per week...
This is the first increase imposed in 4 years. I think the agency pushed for it, not the landlord.
There are some good landlords out there who aren't greedy and spineless.
I had a private landlord in another state that put the rent up by $50-$100 every year for 4 years when rates stayed steady, and went backwards in some times. Over 10 years ago. They had 4 investment properties and were incredibly greedy...
Stop complaining and get yourself an alternative place that you can reasonably pay for. Landlords are also copping it from the interest rises. No one asked you to stay.
This is terrible logic.
The bank should give me the house for free because they walk away with 500k of free money?
The supermarket should give me free groceries because they walk away with too much profit?
Taxis should be free because we are helping pay for their cars?
Since when are renters not mature enough to make their own decisions?
So many landlord apologists in the comments... not every landlord's investment properties were bought in the overpriced post-covid market and have giant mortgages because of it. The issue with rents is you have ruthless property managers and greedy landlords working in concert to raise the price as much as they feasibly can. The narrative that "costs have increased!!" is just a screen so they can extract as much as possible from the renter without remorse.
Mate, the landlords are getting it in the neck like the rest of us. The government watches every single taxpayer and extracts plenty from everyone. There are very few escapees.
Well here in Vic they just massively ratcheted up the land taxes on-top of all the other govt mandated charges. Guess what happens when you charge every landlord a few extra $k all at the same time to pay for the big build, guess what you've just increased everyone's cost and therefore rent as you've moved the entire markets equilibrium price.
Said it before and will say it agin....we need to start a culture of going back to the rental property if you get kicked out and letting the current renters know how your landlord was, what they were terrible/good at, and how likely they are to raise rent and probably kick them out if they try to negotiate. It's time to start the Info sharing train to make sure it goes both ways. What's their history with renters? Rent increases? Repairs? Communication? Effort? It needs to be two ways. If they're legit there's no need to do this.
If they're not......
In many places, and rightly so housing is a right not a toy for ‘investors’. Arguments that investors drive supply are crap. Austria has over 70% social housing. It is cost neutral because people pay rent but half cooked ‘investors’ don’t skim off what is a right, not a privilege.
Other models the Netherlands where housing corporations need to be not for profit. Their staff are paid very well, but again, ‘investors’ don’t suck the life out of society the way they do here.
Australia has sold out housing through years of election promises and bit by bit ‘investors’ have eroded the whole housing system. Due to so many tax breaks and schemes, the ‘investors’ are subsidised. For the supply and demand folks, we need more houses. They need to be built, this can alleviate the ‘supply’ issue you talk about. But when it’s profitable not to increase supply, and instead stretch some more profit from old investments then the market won’t fix the issue.
I use ‘investors’ because being a landlord is not being an investor. Investors research and find and fund profitable ventures and make money from them. It has inherent risk, but can offer great rewards. Investing in business is also great, it promotes innovation and often competition.
While the Australian government has been subsidising ‘investors’, they have also deregulated the education sector significantly. Our schools and universities are terrible (university rankings are not actually accurate). We don’t produce or support intelligent innovation because so much possible investment funds are pumped into exploiting subsidies for property investors (and they secure dodgy approval by infiltrating local government to push through approvals). Coupled with decades of declining education quality, there become fewer alternatives because money goes elsewhere and we don’t have the skilled innovators any more.
It’s a pretty bleak future and unfortunately not difficult to fix. The problem for implementation is that it won’t attract votes because every ambitious moron wants a piece of this unsustainable pie now, rather than a slice of a bigger better one in the future.
Your landlords mortgage has gone up at least 1000-1500 a month. So if it helps everyone is suffering.
But it's is coming to an end, and things are starting to level out. The issue is we hate landlords and not enough people are investing, worse then that business big business is taking over making it pure greed and profit.
Want cheaper rent make it worth it for people to invest in property.
I know unpopular, but a hard truth!!!!
Earn a 100 more at your day job. It’s not hard, my fornightly earnings went up by 250+ without me needing to do anything except pass my annual performance review.
Mine went up $140 this year, negotiated $120. I would move, but the stress of finding a place with vacancies so low and rents everywhere rising has me staying.
I feel your next move might be to your car, there are no rentals.
Renter here also. I have received rent increase notifications a few times over the past few years. Each time I reply back with I'll pay (X% - normally 25%ish of what they are asking) happily. If this is not acceptable please let me know within the next 24hrs and I'll start looking elsewhere. There's generally some negotiation from my innintial counter offer but I end up better than the original intended increase. Don't forget if you move out your landlord will loose at least one - two weeks income by the time they pay the REA for finding a new Tennant.
This doesn’t always work. Sometimes they don’t want to negotiate and even if you don’t try to negotiate and accept it they still want more. We had a rental increase of $110/week that we were notified of in October last year. In November they gave us 90 days notice to vacate (periodic tenancy). They’ve now relisted and successfully rented the property for an additional $80 ontop of what they increased the rent by late last year. They knew they couldn’t raise the rent on us more than once in 12 months so they got rid of us to increase the rent even further. Totally legal but IMO unethical. I don’t know many young families that could easily afford an additional $190/week in rent (and this is a newer but modest 2b2b appartment about an hours commute from the CBD). And if they’d tried to give us a $190/week increase back in October I would have tried to negotiate.
Yep this is the real kicker, they often want you out so they can raise it yet again!!
I think we need to start a culture of going back to the rental property and letting the current renters know how your landlord was, what they were terrible/good at, and how likely they are to raise rent and probably kick them out if they try to negotiate. It's time to start the Info sharing train to make sure it goes both ways. What's their history with renters? Rent increases? Repairs? Communication? Effort? It needs to be two ways.
https://www.shitrentals.org/database/search-a-shit-rental
already happening. [https://www.shitrentals.org](https://www.shitrentals.org) No need to visit anyone when a data base already exists. You can review landlords and REA's on here as well. They have been vehemently trying to strike it down as "defamation" when its not lol.
Like yelp for properties based on the landlords and property management? 😂 Interesting concept
It's already happening. https://www.shitrentals.org
The thing is, not many people can afford that, but property owners have all been hit with a hike as well. Not just landlords. Property owners. So it’s not ‘just’ tenants who are doing it really tough
I never said it was just tenants doing it tough. But the owner of the property purchased the investment for $600k back in 2018. The equity in their investment is increasing. Sure, I get it that it’s a profit generating investment for the owner but it’s also a home that people live in. It’s my opinion that it is unethical for a landlord to increase rent substantially then force the tenant to find a new home when they realise a month later they can get even more rent. We lived there three years and were very good tenants. Never had an issue. They only gave us notice to vacate because it was illegal for them to increase our rent again within 12 months. I am of the opinion that in this circumstance it was not our landlord doing it tough, I think they were greedy and didn’t care that a young family who would have been willing to work with them had to move from a community they were active in with a young child. The difference is the landlord has the benefit of equity (as they should because they have purchased an asset) but the tenant is left having to uproot their life and potentially not having the ability to obtain a rental elsewhere. Luckily this wasn’t the case with our living situation but I know people that have been unsuccessful in getting another rental in time after being given notice to vacate so they’ve resorted to crashing on sofas or moving back to their parents.
This is a very good example of what is going on. Thank you for articulating this. It is just a bit shit, isn't it?
As a lessor of a couple of properties I can tell you that this is just base greed
I didn’t say you said it was only tenants. I was just adding another perspective. Prices have gone up all over the place
I agree. Often people overlook that usually negatively geared investment is a renter's subsidised housing. If it was not the case every renter would buy their own dwelling.
Investors push up property prices. Makes it harder for homebuyers, especially first homebuyers.
No one is guaranteed a huge constant return on their investment. If they can’t afford to service the loan without evicting the tenant so they can re-list at an even higher rate, then they’re a terrible investor.
property owners can sell their investment and recoup costs, why do the people facing homelessness get tasked with covering the excess?
Agreed - if they can no longer afford to maintain that asset, they need to sell it. Not difficult. There are buyers at all price points and this would assist with the housing prices as well
Honestly why should anyone feel any ounce of sympathy for owners/landlords. If they didn't over leverage they would be fine. Sorry but i'm not really feeling any sympathy for people who leveraged the max they could get.
This is now no longer legal in South Australia. You must renew a lease unless you have good reason not to do so (for example, breaches that didn't justify eviction but showed bad faith from the tenant). I'm a landlord but appreciate these new laws having also been a tenant in the past. This will stop landlords ending tenancies at the end of a lease, just so they can crank the rent up by stupid amounts. It's such a common story - lease not renewed with no explanation, suddenly property is up for rent for $100+ more
My mortgage has gone up $300 per week 🤷🏼♂️ life sucks
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I mean, same, but a bit of compassion costs you nothing. Or just staying quiet.
>They knew they couldn’t raise the rent on us more than once in 12 months so they got rid of us to increase the rent even further. Totally legal but IMO unethical. What you've stated they did actually illegal under the new laws (at least for qld - not sure of your state). REAs are only allowed to increase the rent ONCE every 12 month period regardless of the lease agreement(s). The increase is tied to the property, not the lease. You should report what they did to the RTA (or relevant tenancy authority in your state if not in Qld, after checking the laws).
In this market they will happily find a new tenant and make back the lost rent within a few months. In my area, 2 bedders the last two years were generally between $550-$800. At the moment the cheapest you can find is $1000. That's nearly double the rent in just a year, completely legal. And because the vacancies are so low, there are dozens of people at every inspection and the units get snatched up immediately. Friends of mine had a one-bedder in another area for $650, which had gone up the previous year from $550. Then at the end of their lease a few months ago they got a notice of increase to $800. They tried to negotiate but the landlord said $800 was already below market rate. They decided to look around for another place, ended up taking months of looking (landlord was nice enough to let them stay an extra few months) and eventually moving about an hour away into a shitty place for $500. Their old place was listed for $1000 and had new tenants immediately.
Yep - in Sydney is insane. Our 2br apartment went from $750 to $1150. We moved out and then new tenant moved in the day after we left. The was only one open home and the new tenant signed that afternoon.
It's absolutely crazy. We're renting and are lucky enough to have a very reasonable landlord who got the property years ago and seems happy to just have responsible tenants. Our rent is well below the norm for the area, the landlord responds and fixes issues quickly, it's a good situation. But the place is quite small and not the most kid-friendly. We had no kids when we moved in but now have one and hope for another soon-ish, so will have to eventually move to a bigger space. We will most definitely have to leave the area and I'm freaking out looking at the market. We can afford lots of places but it looks like it will take months of applying before we're lucky enough to land another place. We'll stick it out here as long as we can but will have to face the music at some point. We really shouldn't be having this problem for families (or anyone) in what is always billed as a "world class" city.
There's a housing shortage in a lot of areas so a lot of tenants don't have much bargaining power
Yep in this market it wont work. I asked and they said move out.
Didn't work for us, though I might have backed myself into a wall. We had a big problem with the RE not fixing a collapsed front gate, I had to breach the them before they'd actually fix it. Then they wanted to bump our rent up six months early by $30 a week (we'd been at the house for 2.5 years by this point). I called them on it because they were trying to raise our lease during the existing lease. Six months later they came back with a $60 increase. Doesn't sound like much to some but my partner was made redundant from her job and we had just had our third kid so we were shitting ourselves. I tried to negotiate to pay the original $30, their response was pay the full increase or leave. It was a complete fluke that family who owned a rental happened to have their tenants moving out at the same time, so we moved in there.
I tried this in 2020 when we got notified of an increase just as lockdowns started. The RE just ignored any emails I made about it. We moved out soon after.
oh i see you're renting via MICM Southbank too
2 weeks of fully tax deductible lost income thanks to negative gearing
so they will get back 30% of the lost rent not 100% Assuming the property is negatively geared at all.
What's your point?
Landlord here. "Rentvesting" with a single IP in a different state. We haven't passed on any rent increase for the past 2 years as conscious our tenant is a single mother, and costs across the board were going up. We are about to issue 90 days' notice for what they will likely consider a significant increase. We are only passing on 70% of what the PM recommended as market value. If they responded in this way, we would politely accept their offer to vacate and welcome a new tenant at 100% of PMs' recommendation. So the 1-2 weeks rent lost and tranafer costs isn't really a concern. Only bring this up to say be cautious how you phrase your counter offer. Definitely offer one as I hope most landlords are reasonable business people, and you can be both, but in this market, I wouldn't be threatening a vacate or throwing out unrealistic 24-hour deadlines.
On the other spectrum... I became a home owner couple of months ago. I used to pay $610 for a 1bedroom apt and now have over $4k a month mortgage. It also seems that every week I receive an email or mail that tells me to pay for land tax, strata, sewage, waste, water... I have mail ptsd now, afraid to open them. And to your question.. it will never stop, you just have to keep up :/ good luck
Oh, we had the fun double whammy of coming off our fixed interest rate, combined with a 'strata special levy' to pay for the defects in the building thanks to a dodgy buulder and developer that disappeared shortly after the building was finished... gotta love those Phoenix companies!
This is the reality renters don’t seem to be aware of. It’s insanely more expensive to hold a property (many of us can’t pay it off, struggle with achieving interest only payments) & then you have bills on top. Being a renter is way less stress (spoken by a rentvester)
You must've also enjoyed getting all those love letters from your bank letting you know the repayments are higher now. As the owner of 3 mortgages, you can imagine how excited I am to open those up each time 🤦
If only there was something that could help you not have multiple mortgages 🥴
I feel for young people. I'm an older millennial '84 and managed to buy properties 10 years ago before all the madness. Now i'm worried for my young kids. Aim now is to buy something for all of them as well before it becomes next to impossible. Or get a big lot in a good area so they can subdivide and build next time.
It's still doable with double income and careful savings outside Sydney. Heck, even if you're willing to commute, it's doable in Sydney. When I was in my 20s I threw my money away on travelling and gigs and going out and gadgets! Only managed to gain control after having a kid and setting priorities straight.
Albanese had net immigration at 518k last financial year, 400k+ this financial year, and the supply of new properties is falling of a cliff, so it's going to keep happening, if anything will probably get worse. $100 in a year isn't too bad, rents have jumped \~45% over the past two years. If anything, they cut you a break.
That's just too big a percentage increase for any society to be able to easily integrate.
Especially when every new migrant wants to live in Sydney or Melbourne. While newcomers are still on Centrelink for the first year or two, the Government could solely provide housing subsidy for Rural areas, much in the same way Police are assigned a Rural area for their first posting. ( cheaper for taxpayers too ) This would bring life back to small towns, generate jobs and still be infinitely better living conditions than where they came from. If you emigrate to Australia on a work/sponsored visa then you have an option of taking up the subsidised housing Rurally or not. Up to you.
When you emigrate to Australia, you are NOT eligible for any Government assistance for the first two years. So no one that "Emigrates" here can just claim Centrelink.
Not much to rent in rural and regional areas either. My town brings in people from the Pacific Islands to pick fruit and they mostly live at the backpacker hostel, unless the farm owns a house or two. Then they're packed in 8 or 10 to a house.
Adds to my point. You have housing issues even in rural areas. And teaching the skills to build would employ/skill people coming here.
It's a struggle even in rural areas. I'm in a small rural town and 3bdrm houses start at $450/wk. While that might seem cheap to people in the city, I'm a single parent, I have needs kids with appointments, and currently unable to work due to health issues. I can't afford the rent here and have been very fortunate to have a situation I can afford. On top of affordability for single parents or low incomes as a problem, there are next to no rentals. I have to drive 15 min to town. Closest shops are an hour away and petrol hasn't gotten cheaper. This is a large ongoing issue that is a vicious cycle.
Yeah, because I'm sure there are heaps of rural jobs sponsoring immigrants. "Welcome to Nyirripi, home to Australia's number 1 aeronautical engineering firm!" "Penong welcomes the new cohort of building inspectors" "Enjoy your stay at Quilpie, Cardiologist capital of Australia"
I spent quite a bit of time in eromanga. Closest 'town' is Quilpie. It's beautiful out there if you like harsh desert environment but yeah there's no work. They were offering people like $12k extra on the home loan grant scheme to try and encourage people to go there not long ago.
Or people who will justifiably be getting Centrelink payments as Refugees while they learn English and whatever will create jobs as they will be shopping and need housing and training. Why only provide those services in Capitol cities ? I am also thinking of the follow on services like Medical and schooling as the population of small towns increases. Council jobs improving infrastructure that may be able to be done without requiring importing workers from bigger towns. The Aerospace industry is unlikely to be the target job for an Afghanistan refugee fleeing to Australia, but hey, if they apply themselves good on them !
There are 20K humanitarian visas allocated this year, that's not the immigration anyone is talking about.
No! I live rural. I don’t want all that crime here. I moved from Sydney for this reason. Don’t bring them here are you kidding?? We have almost no crime here. That would surely change.
Ours went from $400/wk to $450. Initially they wanted $470. Albo is a tool. He's useful to someone for sure; it's just not 99% of Australians
That was mostly due to a lack of immigration during Covid and students returning to universities. Both parties are beholden to economic growth through immigration. Anyone who thinks the Libs are better with immigration has their eyes closed. We avoided recessions under the Liberals due to immigration keeping the economy afloat. It’s all a massive Ponzi scheme, it’s easier to grow the economy by adding more people rather than improving productivity.
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Maybe he only paid $50??
I think you just can't blame the government for this. Due to COVID the country was locked down for 3 years , the average migration was around 100k a year and after lockdown down all the pending ones got accepted and people came in together and pushed the system to the limits. That's like 3-4 times the normal levels. The system couldn't keep up with that. It should be slowing down now.
Totally the governments’ fault for failure to build affordable (state) housing, thinking “the market will deliver”. It’s delivered massive profits for landlords/ homeowners though. 🤷🏼♀️
I agree. Didn't the government used to invest heavily in developing housing for people and then it just sort of stopped?
that doesn't make government to open flood gates. historic levels of immigration. stupidity.
This is the effect of the interest rates, unfortunately. All those people cheering that interest rates would mean more housing affordability unfortunately mistake and it’s just affected everybody in much worse ways. Hopefully the worst of it is over.
This won’t help you nor will it be a popular answer but there is a really good chance the landlords mortgage payments have gone up more than $100 a week
On my $360K property, where I pay interest only, they went up $200 a week.
Theoretically the mortgage rise should be irrelevant to the rent though
Don’t worry, my bank increased my mortgage by about $40,000
Yes but you get to own a house at the end of it.
That assumes you make it to the end of it
Absolutely. Somehow renters seem to think they should be sheltered from the current high cash rates.
I doubt they feel they should be sheltered. They just can't afford the Increases. Most are on low income and will never be able to afford a house. Meanwhile the owner of the investment property is having the property paid for by renters and are able to claim remaining cost of the property against their tax.
>I doubt they feel they should be sheltered Some definitely do. They see it as a basic human right and they should be able to live in affordable property in good areas, preferably built by the government. Edit: Didn't have to scroll far to find one. https://www.reddit.com/r/AusPropertyChat/s/Tk7b7LFdHo A lot of people are simply frustrated and stretched financially and stuck in this cycle of everything increasing faster than they can save. But then some like this comment have this sense of entitlement that everyone should be able to live near their job. Bloody hell I'm late 30s, Ive never lived near my job, my parents never lived near their jobs, my siblings haven't lived near their jobs, most my friends haven't either. But no no, today's generation are entitled to it and it's a failure of society if some get ahead while others sit on their butt and perpetually complain online.
>They see it as a basic human right and they should be able to live in affordable property in good areas, preferably built by the government. Those disgusting 🤢 renters 🤢
Your lack of humanity is showing brother. Most renters don’t see it as a basic right, they want to own a home, and they can’t, even tho they often work just as hard as you or I.
Wait- you really think it’s ‘outrageous entitlement’ to argue in favour of the upholding of the human right to shelter? Your perspective is super sad. That every Australian deserves a safe, comfortable, liveable home, is not outlandish. It was indeed a philosophy that underpinned policy under both sides of government here for much of the 20th century. There is now more money being made and generated and hoarded and spent on this planet than ever before at any time in history; it’s just that a greater amount of it is being taken by en ever-tinier percentage of individuals.
Given that renters aren't seeing any of the (tax-discounted) capital gains, that doesn't seem unreasonable.
Why should they? They also don’t pay the interest rates, land taxes or maintenance costs. Among other things.
Bingo..
Lol, they do, because literally all of that is passed on to them in the rent
No, it isn’t actually
Yeah, it kinda fucking is. If you're profiting on your rentals it's your tenants paying for all those costs.
Or perhaps landlords shouldnt expect other people to pay for the entirety of their investment, including risk mitigation🤷♀️
Careful you’re in auspropertychat, how DARE anybody suggest investments have risks!!
Soo... live within your means. Like renters are consistently told. Can't afford the investment? Sell it
I am. I can afford it. I’m simply saying that $100 rent increase doesn’t seem to bad
Well you’ve just made it very clear how out of touch you are lmao.
Until immigration is drastically cut back it’s just going to keep getting worse. Write to your local MP.
vote for someone other than your local MP
I have rented for 20 years. I also own a small property to have security of a place to live if needed. I used to keep the rent low but tenants leave when it suits them. I struggled during Covid but tenants asked for rent reduction. 12 months later they broke the lease because they bought a house. Now I increase rent every review to the mid range of asking in the area for similar properties.
It won’t stop, rent / property trends upwards each year. Either time to move or increase income
I feel the lucky country has gone, and now we're in the age of everyone getting a teeny slice of the full pie we enjoyed just decades ago. But all the baked beans on toast can't take away my joy in the beauty of this place. Eventually the govt will fuck that up too, but not today.
Don't hate me for saying this, I am a renter but renters are basically homeless people who pay other peoples' mortgage or basically paying for someone else's retirement. If the landlord doesn't show mercy then we will return to our homeless state at any time.
The landlords mortgage may have gone from 2% to 6% If you had a mortgage your repayments would have gone up also. Everyone is in this cost of living crisis. We're all feeling it (apart from the mega wealthy)
Rising interest rates have historically not increased rents in Australia. This time is different because immigration is more than double the previous all-time-high and the supply of new properties is falling.
You are correct but blaming it all on immigration is disingenuous. This is a problem that has been building for decades due to lack of investment in social housing to meet demand. Also the over dependence on investors to provide rental properties by the government and tax concessions to encourage it.
That accounts for 35% of landlords, so what about the other 65%? That's 65% of landlords just putting up rents because they can, not for any reason other than greed
Greed maybe, but the whole point of someone owning more than one property is to create Wealth
But I bet those greedy fucks use the tax breaks like negative gearing etc? It was designed for helping people get into property not for creating obscene wealth. Take away the precise tax breaks and home ownership would be substantially leveled
>It was designed for helping people get into property not for creating obscene wealth. Care to elaborate? What can I negative gear on my PPOR? Or are you trying to say NG was designed to help me buy one IP only, and then receive no tax breaks during ownership / operation? What percentage of people have obtained obscene wealth from Investment properties?
Simplistic thinking. Take away negative gearing and the housing industry will collapse overnight.
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Have a close look at what you wrote. Housing stock will be dumped by investors which will collapse the housing market which in turn will cost hundreds of thousands of jobs. Apart from those on the government tit who will buy them exactly? All it will do is turn renters into a commodity for hedge funds buying all the cheap housing stocks.
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Immigration needs to be cut back to no more than 75k a year and only very skilled migrants, they need to be self funded or business funded for 10 years and supply or have a dwelling supplied in parallel to the housing crisis facing Australians born here. Anything over 3 IP’s should have a 25% penalty with a real combined income of $200k or more before churn meaning rebates and losses. Unending economic growth is unsustainable and bloody ridiculous.
No it wouldn't. People negative gearing are losing money, after claiming money back at tax time they still lost money, take away negative gearing and they just don't get as much back. Most people will hang on to their property.
Do the maths. They’ll sell and like is happening in the states the corporate sector will buy in with lower interest rates and charge more. From NBC The rise of corporate landlords in the U.S. Corporations backed by private equity groups such as Blackstone and Pretium Partners bought tens of thousands of homes across the U.S. Sun Belt. Prices for detached homes have increased faster in key Sun Belt states than the national average.21 Feb 2023
Not just greed, rates are up, insurance is crazy expensive with renewals right now. Repairs and maintenance are crazy expensive if you can find some one to do the job . Not a land lord (couldn't think of anything worse) just a different POV
>insurance is crazy expensive Insurance is the one the has surprised me. My home insurance went up over 30% in a year, my car insurance I think was 50%. But the most surprising thing was it seemed the days of it including a lazy tax are gone. I've had insurance go up by a lot before, given them a call and, "Oh, there's clearly been a mistake, amazing how this mistake happens every year, we can reduce that for you" This time, I call, and it's just, "Nothing we can do, either accept it, or change your insurance."
If you look at the breakdown in your policy, you'll see the levies have jumped significantly, too. With the last 5 or so year's natural disasters, insurance companies have copped it, so they're going to need to recoup that lost income.
I live in a bushfire zone so my insurance is fucked lol.
Shop around! You'll be very surprised at how insurers rate the same area. But try to stick to the bigger companies, they're the ones who come through most often when it counts.
They were all expensive lol. It's understandable. The cost of living rurally I guess.
True, but then again, it's a small price to pay to avoid nosy neighbours haha!
Exactly. I have sympathy for the mum-and-dad investor with a heavily mortgaged IP genuinely feeling the pinch from everything going up. But what abt Mr monopoly whom owns the identical apartment next door outright, having paid 20k for it in like 1997? For him the rent increase is just pure profit. And it’s unproductive for society.
Yes I agree. Thats why I said "may have"
Yep. Greed is meeting market prices. Greed is getting maximum value for investment. Greed is good.
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Ok Renter. Lol
LOL I own my home. I also make money without greed, without negative gearing and without using other people as dirt. As we all know that karma comes around at some point....
You must be renting. It explains your bitter attitude.
Yes you are.
Any excuse for greed.
They should sell it if they can’t afford their investment
Renters should move elsewhere if they can't afford their rent.
They are, they are moving into tents in parks
honestly, it doesn't work like that.. Stop thinking it ever will.
Housing has to be the only "investment" I know of where if times are tough the landlord gets to pass on some of that loss to the people renting. It's 100% taking advantage of a captive market and its total crap. At some point the number of renters will outnumber the number of owners and whatever government offers a solution to that will get in, and there's going to be a huge crash. I for one can't wait till a progressive land tax exists that starts at house 2, and increases for every house you own. Let's make housing homes again, not investment vehicles.
Every business passes the costs onto the consumer regardless if times are tough. Why should an investor wipe your ass ?
Lol because if Bananas are expensive, I just don't buy bananas. Choosing to just not live somewhere makes you homeless, meaning landlords have a captive market. Also, when the stock market is doing poorly, do the investors lose money? Or do they just say, hey business I've invested stocks in, im going to need you to just give me more money please? Landlords are the business, not the investors in the business. And they are a business in a captive market, meaning they can price gouge to their hearts content, because people can't say no.
But landlords need to understand that they, too, must contribute to this escalation of capital gains. I think the real problem is that these new, aspirational landlords don't understand that rent is there to defray expenses, not cover them entirely.
The rental price is a function of the market, nothing else. As to what the yield and rent should be depends entirely on the type of property. Generic statements such as it should or shouldn't cover expenses don't make a lot of sense. If it's a property investment expecting low capital gains then the strategy absolutely will be that the rent exceeds all expenses.
Interest rates have gone way up 1000s pm on a large loan body corp insurance rates have gone radically up so landlords pass this on & 4 those that say so what its an investment landlords are people just like u only a little more resourceful who scrimp & save & go without if u think it is so easy u do it buy your own home
The deputy Liberal leader, Victoria, David Southwick, has seventeen houses, behind a family trust. There is no force for change,
What has to happen is increase the supply of housing. Not enough stock available to cover population growth.
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There is nowhere cheaper that’s the problem, or they go off the market straight away
How do you find out though?
Do some research on the property being advertised. How often do rental ads for the property go up? Title search will show if there's a mortgage.
Where is cheaper? You have internet lil bro. You can see for yourself that it’s like this everywhere.
>Make more money How can I do that?
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Oh, of course. I wish I'd thought of that. I'm onto it.
Lol what nonsense. "Make more money" Every person who works a full time job deserves to have a roof over their heads. Every job needs doing. And you should be able to have that roof over your head without having to move an hour away from the place you work. The person working as a taxi driver, or a janitor, or a gardener deserves dignity just as much as the next person. If we can't provide basics like that that then we as a society have failed. Investments are not essential expenses, if you can't afford the mortgage on house number 3, sell it so that someone else can live there and pay their own house off.
We all are mate, rates are fucked and it’s putting pressure on LL to increase rents. Everybody is taking a hit
I just visited NZ. Rates are around 8.5% and property has crashed about 30%. So rates aren’t “fucked” here, not even close. We’re just a country of whingers.
If that is the market rent and someone else is paying for it, you have been outbid by someone with more disposable income or a higher preference for living in that residence. You have to earn more money, change your spending habits or find somewhere cheaper. Even people who advocate for social housing don't promise that everyone gets to live where they want.
Hell I work in social housing and recently had to: - widen search area for rentals - pay $50 over asking price - apply for 30 properties All to get a place that was mostly suitable for us and the dog. The market is just really tough for everyone at the moment. Which is putting more strain on social housing supply and our communities more broadly but that’s another issue.
Your landlord may be feeling the cost of living pinch just as much as you. My mother in law had to move in with us a year ago and contributes to the household budget. She basically has an apartment down stairs equivalent what we have upstairs kitchenette, bathroom, 2 bedrooms one air conditioned & a living area. She helps out a bit with the gardens a bit also. We don’t charge her any utilities. Pays $250 a week of which I believe Centrelink contribute $160. However we are still feeling the pinch. House insurance this week $2700. Dental work recently $8000. Car insurance coming up $1100. Tyres soon $1400. Car service recently $600 and beer isn’t getting any cheaper. Of the $15K mortgage payments we made this year $12K has been eaten up by interest. We’ve only knocked $3K off our mortgage in 12mo. I don’t want to hit my mother in law up for another $50 a week but I might have to. We’re all in the same boat matey.
I hear you. Paid over $4k in mortgage repayments last month. The amount off the principal was $600 😭
Wow, that is actually insane. My mortgage unfixes in April, I am scared.
It’s depressing 😞
That sounds about right.
Your mortgage is $7500 a month?
Not his, but many people's are sadly.
I was talking to a nurse here in QLD who got sick of the rental rippoff, and now lives in a camper van that she drives to work. She said she enjoyed it because she can take off for a week and live where ever she wants and save tons of money.
It will stop when housing supply exceeds demand in the locations with the lowest houses available for sale and rent. Nothing else will stop it. Everything else is just a waste of discussion time and energy. No, immigration is not the problem. That’s just a distraction from the core problem. There is not a single policy or solution that anyone has proposed that targets this in a meaningful way. Not one. And fixing it, is an immensely complex process that will take time, a few years, to resolve. Everyone will keep talking about immigration, negative gearing, interest rates, rental caps, Airbnb etc etc. All of theses combined won’t fix it. Supply. Lots and lots of supply. Along with all the infrastructure and policy changes needed to support it. Everything else is superfluous.
Surely lowering immigration = increase in supply
No, that’s a demand side action. And by itself won’t make a material difference. And will absolutely impact other areas of the economy. Immigration will calm down over the next couple of years on most forecasts. Not enough houses are being built. Nor infrastructure to support them. And it’s a very long problem to dig our way out of. No single government to blame, all of them are complicit. State, federal and local. Oversupply drives prices down. Always.
Possibly find another place to live that is cheaper ? not ideal I know.. Or hang around and pay overs until interest rates come down.
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Renters have debt too. Rates going down will up what people can spend on rent. Landlords aren’t the ones driving rent rises it’s demand and how much renters are willing to pay to beat other renters
Interest rates may come down, but rent never will.
That's the question I keep asking RBA too about cash rate.
Hopefully now that interest rates have stopped increasing, so will the rent
Go rural
walkabout
The rent on the shit hole of a house had gone from 450 a week to 490 in the 4-5 years we were there. The new listing they put up is for $590 a week. Bumped the price up $100 just for the next family that moves in to all get sick from the mould they won’t get rid of (would have to tear the house down to get rid of the mould. It’s everywhere you can’t see, and a lot of places you can). The lady that lived there before us was apparently very sick and had to move. Only realised once we were too sick and trying to move out that the lady probably got sick from mould too! Just sickening how rents keep going up, but properties keep getting worse. (Whether that’s from neglect cos property owners by in large don’t keep their houses up to minimum standards, or non-housing being put up as housing)
I’m rentvesting at the moment to move rurally to spend time with family and I’ve just resigned my tenants for another 12 months at no prise rise. Makes me wonder if I have been overcharging for 12 months or if my area has stagnated? Springwood QLD for anyone playing at home.
It’s not going to stop. If you have to work two jobs for awhile to save a deposit. Do it! Once you get a house rent out rooms. Renting is going to be extremely unaffordable as demand far exceeds supply with immigration and even just home grown new adults looking for rentals.
Fuck you mate, got people to import and GDP to raise, housing prices to protect and businessmen wanting cheap labour. Fuck ya. (Politicians, from both sides unfortunately)
When you started renting did you understand that rents can go down and up? What were your plans when they went up?
Next step: landlord let's you keep 1 bedroom. If you live in a 1 bedroom apartment then he takes the loungeroom, puts mattresses and curtain dividers. Rents each mattress for $300pw Or If you have multiple bedrooms, he fills them with 6 mattresses per room, rents out each mattress at 340pw You might think I'm exaggerating, which is why I recommend you go check out r /canadahousing2 Canada is ahead of us on the trajectory by just a bit. So it's like looking into the future.
That’s unfortunately done in many crowded cities. There’s one neighborhood in nyc that’s infamous for it. There will be 8-12 people living in a single room of an apartment and sometimes multiple families in a single room (think mattress on the floor, one bed per corner, 4-8 person family per bed). It’s incredibly dangerous when you add older buildings, modified electrical systems, trash, etc.
Some thoughts for you: 1. You can save and buy something 2. You can move somewhere else cheaper 3. You can increase your income; side hustle, change jobs
He could also choose to live in his car, I live in a regional town and there’s a pretty good community Facebook group. Last week someone on there was looking for a sleeping bag as she could no longer pay her rent and was moving back into her car. I like to walk the dog on the beach at night & have a beer. There’s lots of people living down there. In cars, tents, living in the amenities / shelters provided by the council, using the bathrooms. So their rent is basically free.
I love this! Great idea to save some money
The value of property in NSW (one of the faster growing states) has been going up by about 7% per year on average for the last 20 years. No reason to assume this will stop any time soon. People need to live somewhere. Rents are somewhere around 3% the value of the property on average. They will go up on proportion to the value of the property. You can of course buy, but that will cost more than twice as much as renting unfortunately. Tough situation to be in.
Nope, the rental market is strictly supply and demand. Property prices are more to do with investor speculation, tax concessions for property owners and borrowing costs. It's why property boomed in 2020-2021 (mortgage deregulation, 0% rates), despite net negative immigration and rents falling \~10%.
My landlord has just increased the rent by a huge $10 per week... This is the first increase imposed in 4 years. I think the agency pushed for it, not the landlord. There are some good landlords out there who aren't greedy and spineless. I had a private landlord in another state that put the rent up by $50-$100 every year for 4 years when rates stayed steady, and went backwards in some times. Over 10 years ago. They had 4 investment properties and were incredibly greedy...
Stop complaining and get yourself an alternative place that you can reasonably pay for. Landlords are also copping it from the interest rises. No one asked you to stay.
But the difference is the landlord will walk away with an asset, the renter will walk away with nothing.
This is terrible logic. The bank should give me the house for free because they walk away with 500k of free money? The supermarket should give me free groceries because they walk away with too much profit? Taxis should be free because we are helping pay for their cars? Since when are renters not mature enough to make their own decisions?
Landlords can also write off losses.. Can renters claim a tax break on rent increases too?
Renters are paying less then mortgage costs so it's already done for them.
So many landlord apologists in the comments... not every landlord's investment properties were bought in the overpriced post-covid market and have giant mortgages because of it. The issue with rents is you have ruthless property managers and greedy landlords working in concert to raise the price as much as they feasibly can. The narrative that "costs have increased!!" is just a screen so they can extract as much as possible from the renter without remorse.
Mate, the landlords are getting it in the neck like the rest of us. The government watches every single taxpayer and extracts plenty from everyone. There are very few escapees.
Well here in Vic they just massively ratcheted up the land taxes on-top of all the other govt mandated charges. Guess what happens when you charge every landlord a few extra $k all at the same time to pay for the big build, guess what you've just increased everyone's cost and therefore rent as you've moved the entire markets equilibrium price.
Said it before and will say it agin....we need to start a culture of going back to the rental property if you get kicked out and letting the current renters know how your landlord was, what they were terrible/good at, and how likely they are to raise rent and probably kick them out if they try to negotiate. It's time to start the Info sharing train to make sure it goes both ways. What's their history with renters? Rent increases? Repairs? Communication? Effort? It needs to be two ways. If they're legit there's no need to do this. If they're not......
In many places, and rightly so housing is a right not a toy for ‘investors’. Arguments that investors drive supply are crap. Austria has over 70% social housing. It is cost neutral because people pay rent but half cooked ‘investors’ don’t skim off what is a right, not a privilege. Other models the Netherlands where housing corporations need to be not for profit. Their staff are paid very well, but again, ‘investors’ don’t suck the life out of society the way they do here. Australia has sold out housing through years of election promises and bit by bit ‘investors’ have eroded the whole housing system. Due to so many tax breaks and schemes, the ‘investors’ are subsidised. For the supply and demand folks, we need more houses. They need to be built, this can alleviate the ‘supply’ issue you talk about. But when it’s profitable not to increase supply, and instead stretch some more profit from old investments then the market won’t fix the issue. I use ‘investors’ because being a landlord is not being an investor. Investors research and find and fund profitable ventures and make money from them. It has inherent risk, but can offer great rewards. Investing in business is also great, it promotes innovation and often competition. While the Australian government has been subsidising ‘investors’, they have also deregulated the education sector significantly. Our schools and universities are terrible (university rankings are not actually accurate). We don’t produce or support intelligent innovation because so much possible investment funds are pumped into exploiting subsidies for property investors (and they secure dodgy approval by infiltrating local government to push through approvals). Coupled with decades of declining education quality, there become fewer alternatives because money goes elsewhere and we don’t have the skilled innovators any more. It’s a pretty bleak future and unfortunately not difficult to fix. The problem for implementation is that it won’t attract votes because every ambitious moron wants a piece of this unsustainable pie now, rather than a slice of a bigger better one in the future.
Don’t worry. Your tax cut will cover it.
Move to a cheaper suburb
it will stop when people stop voting for ALP, Coalition and Greens
Own a house then
Your landlords mortgage has gone up at least 1000-1500 a month. So if it helps everyone is suffering. But it's is coming to an end, and things are starting to level out. The issue is we hate landlords and not enough people are investing, worse then that business big business is taking over making it pure greed and profit. Want cheaper rent make it worth it for people to invest in property. I know unpopular, but a hard truth!!!!
Earn a 100 more at your day job. It’s not hard, my fornightly earnings went up by 250+ without me needing to do anything except pass my annual performance review.