Society/Culture Landlords - What is the point?

[Power Raid]

Landlord demands 60% increase in rent from Brisbane tenant amid Queensland housing crisis

Tenants Queensland says the hike is far more than the average increase of 35% that renters seek advice over

www.theguardian.com

So this came up on The Guardian today...

Why are these people allowed to have the jobs they have?
What is the justification for being able to hike prices higher than inflation rates?
Why don't we have more public housing?

There are a lot more vacant houses than homeless people in Australia, so what's the point for all of this?

the cost of managing property through a department is massive and much cheaper (if not free) for a landlord to do it themselves.

further the allocation of scarce resources needs to be considered be it health, policing or social housing


that said I'm pro property and wealth taxes, as I don't see why investors should get the lion share of property price increases if all they have done is held the land during a rezoning or population increase.

we should also have public housing with every train station having 3 to 5 50 story buildings over the top. Offering proper parking, commercial and public housing. Then simply build out between the stations. The land is already govt owned and the public transportation becomes a key asset.

public housing should never be leased out but an islamic banking model where tenants have to buy in. That way if they destroy the property, they lose their own asset.

 

[Power Raid]

Quite simply, housing should be a right, not an investment. But here we are.

there is more land and property than people

so the issue is govt preventing banks from lending to ordinary people, rezoning so the land has speculative value, higher density policy just translates to less for more $

our state govt is to blame for all of this (other than the banks which is federal)

 

[Carringbush2010]

there is more land and property than people

so the issue is govt preventing banks from lending to ordinary people, rezoning so the land has speculative value, higher density policy just translates to less for more $

our state govt is to blame for all of this (other than the banks which is federal)

I'm not certain it's as easy as 'just let em lend'.

I'm sure you're aware of the royal commission into mortgage lending somewhere around 2017?

The reason (very very good reason) for it was because far too many clients borrowed beyond capacity and the lenders enabled it, this resulted in foreclosures left, right and centre. Basically, left those already in tight financial situations into scenarios where they've lost their house, mortgage and whatever savings they scrounged to get that loan in the first place.

Not good individually, and certainly not good for the economy.

The result of that commission, in short is a lending sector that acts like a very nervous horse, that will make all and sundry jump through each and every hoop to ensure whoever they lend to can accommodate their loan.

Gone too far the other way.

 

[ElectricG]

What’s the alternative to landlords and renting existing?

 

[Power Raid]

I'm not certain it's as easy as 'just let em lend'.

I'm sure you're aware of the royal commission into mortgage lending somewhere around 2017?

The reason (very very good reason) for it was because far too many clients borrowed beyond capacity and the lenders enabled it, this resulted in foreclosures left, right and centre. Basically, left those already in tight financial situations into scenarios where they've lost their house, mortgage and whatever savings they scrounged to get that loan in the first place.

Not good individually, and certainly not good for the economy.

The result of that commission, in short is a lending sector that acts like a very nervous horse, that will make all and sundry jump through each and every hoop to ensure whoever they lend to can accommodate their loan.

Gone too far the other way.

What’s the alternative to landlords and renting existing?

labor has presented islamic banking as a solution

personally I think this is the answer and it should be expanded for everyone's first home

 

[JCHolmes]

Quite simply, housing should be a right, not an investment. But here we are.

Has been a basic human right (shelter) for ages as stated in some highly regarded doctrine of rights whose name i cant remember because its not worth the paper its written on.

 

[ElectricG]

labor has presented islamic banking as a solution

personally I think this is the answer and it should be expanded for everyone's first home

I can’t find any info on this. Is that true?

 

[HairyO]

the cost of managing property through a department is massive and much cheaper (if not free) for a landlord to do it themselves.

further the allocation of scarce resources needs to be considered be it health, policing or social housing


that said I'm pro property and wealth taxes, as I don't see why investors should get the lion share of property price increases if all they have done is held the land during a rezoning or population increase.

we should also have public housing with every train station having 3 to 5 50 story buildings over the top. Offering proper parking, commercial and public housing. Then simply build out between the stations. The land is already govt owned and the public transportation becomes a key asset.

public housing should never be leased out but an islamic banking model where tenants have to buy in. That way if they destroy the property, they lose their own asset.

Introduce a dormant tax and take away the capital gains reductions and interest reductions and all the other benefits investors get if their properties are empty.

I imagine the housing problems would disappear very quickly.

 

[Power Raid]

Introduce a dormant tax and take away the capital gains reductions and interest reductions and all the other benefits investors get if their properties are empty.

I imagine the housing problems would disappear very quickly.

In mining you have a use it or lose it concept……and it works

What your suggesting is similar

 

[Power Raid]

I can’t find any info on this. Is that true?

Yes but they call it something else

Joint ownership or something. It was a centre piece policy

 

[HairyO]

In mining you have a use it or lose it concept……and it works

What your suggesting is similar

And it does nothing to investors who are actually doing something with their properties.

 

[burge13]

Introduce a dormant tax and take away the capital gains reductions and interest reductions and all the other benefits investors get if their properties are empty.

I imagine the housing problems would disappear very quickly.

We pay far too much tax on everything here so i disagree with removing CGT reductions but the dormant tax is a great idea!

 

[ElectricG]

Yes but they call it something else

Joint ownership or something. It was a centre piece policy

Oh so it’s creeping Shariah (jk).

I thought the whole point of Islamic banking was that they control the capital value of the loan to simulate the addition of interest so it works out the same.

 

[HairyO]

We pay far too much tax on everything here so i disagree with removing CGT reductions but the dormant tax is a great idea!

The other option is making it 5 or 10 years before you get CGT reduction or only allowing CGT reduction on a single property every 5 or 10 years.

The very rich pay far too little tax. They arent paying a lot of tax.

 

[burge13]

The other option is making it 5 or 10 years before you get CGT reduction or only allowing CGT reduction on a single property every 5 or 10 years.

The very rich pay far too little tax. They arent paying a lot of tax.

Yet i got a bill the last 3 years because we are taxed far, far too much. I dgaf what "the rich" do, i care about my wallet. Im not in favour of changing cgt rules as its basically the only vessell we have as commoners. You dont pay cgt on primary living residence and 20% after 12 months. Its a good system imo

Upping it to even 5 years will see less flips, less renovations and therefore poorer areas continuing with shitty houses for longer. Let investors improve worse suburbs, the government wont or cant...

People bitching about property investors can get in the bin. The system is available to all of us. You can bitch and be left behind or get on board. Very strangely, people choose to do the former. My first house was pretty shit, as was my first car. We all start somewhere yet some choose not to start preferring to scream for handouts from the government.

The dormant tax is a ripper idea and solves some problems. Make sure investors at least do something with the property. Bring that in tomorrow imo. Would do alot of good.

 

[PrinceCharles]

Landlord demands 60% increase in rent from Brisbane tenant amid Queensland housing crisis

Tenants Queensland says the hike is far more than the average increase of 35% that renters seek advice over

www.theguardian.com

So this came up on The Guardian today...

Why are these people allowed to have the jobs they have?
What is the justification for being able to hike prices higher than inflation rates?
Why don't we have more public housing?

There are a lot more vacant houses than homeless people in Australia, so what's the point for all of this?

It sounds like you don't know what a landlord is...

 

[Power Raid]

And it does nothing to investors who are actually doing something with their properties.

We pay far too much tax on everything here so i disagree with removing CGT reductions but the dormant tax is a great idea!

1) negative gearing ceases for the period the property is not bona fide held out for rent (this is sensible)
2) all negative gearing and CGT should remain otherwise you enshrine a class system. As under labor and the greens, the wealthy could continue to NG but not the ordinary. CGT must remain simple and encourage long term investments rather than removing discounts and promoting speculation and day trading.
3) all property should have a proper wealth/ property tax with offset income tax. ie no double taxing but simply ensuring a minimum tax was collected. This also ensures assets generate wealth (not left idle) as they are taxed.

 

[Power Raid]

Oh so it’s creeping Shariah (jk).

I thought the whole point of Islamic banking was that they control the capital value of the loan to simulate the addition of interest so it works out the same.

islamic banking is a partnership

1) you buy 10% equity and the bank or govt buys 90%. Their 90% goes up and down in value with the market
2) you pay rent on the 90% and reduce as you increase your equity

so the key difference is not interest vs rent. the key difference is the partner is exposed to equity (the market) versus a capital backed loan instrument.




Labor's best policy is introducing this to Oz. Fingers crossed it is expanded.

 

[faible]

i care about my wallet.

So do the rich. Therein lies the problem.

If everyone only cares about their own wallet, those in positions to manipulate the system will do so to their benefit.

 

[burge13]

So do the rich. Therein lies the problem.

If everyone only cares about their own wallet, those in positions to manipulate the system will do so to their benefit.

Everyone does. Thats why politicians hand out so much money in welfare and subsidies. It buys votes

Again, this system is available to all. Rather than moan about it, be better. I do enjoy the posters here who always complain about this stuff unwittingly outing themselves as losers as they never seem to have anything but if it stinks everywhere you go, you need to look at your own feet at some point. Stop bitching about "the rich" and worry about yourself....

Also so standard of you to selectively quote tiny parts of a post rather address the overall message. Idiotic

 

[morningbrown]

Everyone does. Thats why politicians hand out so much money in welfare and subsidies. It buys votes

Again, this system is available to all. Rather than moan about it, be better. I do enjoy the posters here who always complain about this stuff unwittingly outing themselves as losers as they never seem to have anything but if it stinks everywhere you go, you need to look at your own feet at some point. Stop bitching about "the rich" and worry about yourself....

Also so standard of you to selectively quote tiny parts of a post rather address the overall message. Idiotic

Median house price in Metro Melbourne is $993,000. Median income at last census was $52k. The system is not set up for people to be able to afford their own housing.

 

[burge13]

Median house price in Metro Melbourne is $993,000. Median income at last census was $52k. The system is not set up for people to be able to afford their own housing.

Its tougher now, no arguments. I have this argument regularly with my parents who claim we have it easier

First property doesnt have to be metro Melbourne though. Certainly doesnt need to be 993k. Why not buy an apartment, unit etc. Get into the property market and build equity is the best way forward. People would sooner complain its too hard than even try

First property doesnt even need to be lived in, or in the state you reside. But rather than try "wahhh there's people better off than me so I can't do anything and they should be taxed more". Spell

 

[morningbrown]

Its tougher now, no arguments. I have this argument regularly with my parents who claim we have it easier

First property doesnt have to be metro Melbourne though. Certainly doesnt need to be 993k. Why not buy an apartment, unit etc. Get into the property market and build equity is the best way forward. People would sooner complain its too hard than even try

First property doesnt even need to be lived in, or in the state you reside. But rather than try "wahhh there's people better off than me so I can't do anything and they should be taxed more". Spell

Even trying to save a deposit while renting in any capital city is close to impossible, especially if you're single. You either have to move back in with the parents or live in incredibly meagre circumstances.

 

[Gethelred]

Everyone does. Thats why politicians hand out so much money in welfare and subsidies. It buys votes

Again, this system is available to all. Rather than moan about it, be better. I do enjoy the posters here who always complain about this stuff unwittingly outing themselves as losers as they never seem to have anything but if it stinks everywhere you go, you need to look at your own feet at some point. Stop bitching about "the rich" and worry about yourself....

Also so standard of you to selectively quote tiny parts of a post rather address the overall message. Idiotic

Here lies the problem:

People complain about the system: they're idiots and whiners, and instead of trying to change the system they should do use it to better their lot and obtain power to evince change.
People complain about the system whilst using it the way you suggest: they're hypocrites, and will continue to take advantage of the poor people they supposedly champion. If they were honest, they'd hold to their ideals and make money without gaming the system.

You've got us coming and going, Burge.

 

[burge13]

Here lies the problem:

People complain about the system: they're idiots and whiners, and instead of trying to change the system they should do use it to better their lot and obtain power to evince change.
People complain about the system whilst using it the way you suggest: they're hypocrites, and will continue to take advantage of the poor people they supposedly champion. If they were honest, they'd hold to their ideals and make money without gaming the system.

You've got us coming and going, Burge.

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