Society/Culture Landlords - What is the point?

[Frank Grimes]

or you know, sell and reinvest in shares...

Why do that when I can just raise the rent to cover it?

 

[Nuggs Bunny]

Why do that when I can just raise the rent to cover it?

There's no reason to do anything other than raise the rent in your position, and this is why there's probably going to be rent caps in the future. The balance of power is going to continue to tip towards tenants as the share of renters in the housing market continues to grow.

 

[evolved2]

I think because they function as a commercial business with employees, have transparent business dealings etc
I believe air bnb to be complete and utter scams and want to see that part of the sector basically * off and die.

I don't really have a problem with airbnb in theory, nor negative gearing. My main gripe is foreign ownership. If property ownership was confined to Australian citizens, how far would that go to solving our issues?

 

[Crankyhawk]

A quarter of Australia’s property investments held by 1% of taxpayers, data reveals

Exclusive: Taxation office figures also show a clear majority of those investors are over the age of 50

www.theguardian.com

Tools for wealth generation. Sell up and buy shares ya pricks.

 

[TheEscapeClub]

Government needs to step up, its not up to investors to solve the issue. They can and should be able to charge what they want, its their asset.

Negative gearing and CGT discounts were government initiatives to encourage investment in residential properties for the long term rental market to supplement the government owned social housing. The short term rental market and huge capital gains have killed this off.

Keep negative gearing, keep the CGT discounts. Landlords whinge about getting s**t tenants and having their properties trashed and rent not being paid, fine, the government to pay for insurance premiums for housing stock that is in the long term rental market only (12mth minimum lease period) and is occupied.

People who want to invest in residential property for the short term market or to leave it vacant and sit on it for capital gains get nothing. They can make do with the capital gains when they sell it and they can pay the full whack of CGT.

Either stop or severely curtail foreign ownership too.

 

[burge13]

Negative gearing and CGT discounts were government initiatives to encourage investment in residential properties for the long term rental market to supplement the government owned social housing. The short term rental market and huge capital gains have killed this off.

Keep negative gearing, keep the CGT discounts. Landlords whinge about getting s**t tenants and having their properties trashed and rent not being paid, fine, the government to pay for insurance premiums for housing stock that is in the long term rental market only (12mth minimum lease period) and is occupied.

People who want to invest in residential property for the short term market or to leave it vacant and sit on it for capital gains get nothing. They can make do with the capital gains when they sell it and they can pay the full whack of CGT.

Either stop or severely curtail foreign ownership too.

Vacancy tax solves much of this.

 

[TheEscapeClub]

Vacancy tax solves much of this.

Does it solve the huge number of short term rentals?

 

[burge13]

Does it solve the huge number of short term rentals?

As in airbnb? Most of these are coastal or regional. People wont live there for work nor afford those houses to begin with

 

[Seeds]

I don't really have a problem with airbnb in theory, nor negative gearing. My main gripe is foreign ownership. If property ownership was confined to Australian citizens, how far would that go to solving our issues?

They add to prices but they dont add to the rental problem. In fact they help the rental problem because foreign owners dont live in the houses they own and they rent them out.

the recent problem with housing is lack of supply created by both lack of land releases and now rising construction costs which have gone through the absolute roof since the pandemic.

we need governments to release more land supply for housing and for more immigrant construction workers to come into the country and build houses on the new land at lower cost.

 

[Mofra]

Does it solve the huge number of short term rentals?

No, but it helps.

Another measure: categorizing short-term rentals as commercial property and applying commercial land-tax to them just might force some of those properties back to the residential market.
Some regional areas are really hurting - King Valley and Mornington Peninsula in Victoria ibn particular.

 

[Theseventhhamster]

They add to prices but they dont add to the rental problem. In fact they help the rental problem because foreign owners dont live in the houses they own and they rent them out.

the recent problem with housing is lack of supply created by both lack of land releases and now rising construction costs which have gone through the absolute roof since the pandemic.

we need governments to release more land supply for housing and for more immigrant construction workers to come into the country and build houses on the new land at lower cost.

lol, sucked in.

 

[Golden_6]

As in airbnb? Most of these are coastal or regional. People wont live there for work nor afford those houses to begin with

Disagree. We’ve seen a huge number of clients take their investment properties out of the long term rental market and into the short term market with significantly increased revenue.

Fix that situation and you have a considerable amount of housing supply re-enter the market overnight. To me it’s low hanging fruit.

 

[Seeds]

lol, sucked in.

Huh?

 

[Seeds]

Disagree. We’ve seen a huge number of clients take their investment properties out of the long term rental market and into the short term market with significantly increased revenue.

Fix that situation and you have a considerable amount of housing supply re-enter the market overnight. To me it’s low hanging fruit.

But tourists have a right to housing stock too.

the problem is lack of housing stock. Not a problem of the wrong people using it.

 

[Seeds]

No, but it helps.

Another measure: categorizing short-term rentals as commercial property and applying commercial land-tax to them just might force some of those properties back to the residential market.
Some regional areas are really hurting - King Valley and Mornington Peninsula in Victoria ibn particular.

But why cant people use them for vacations? we shouldnt waste housing stock in great places for vacations for permanent housing stock as the permanent users dont reap the full value of those locations. The market is the best way to determine whether housing stock should be permanent live in or for tourists.

the problem is lack of housing stock. Not a problem of housing stock being used by the wrong people. The fix is for government to release a lot more land supply and invest in public infrastructure services for those land releases.

 

[Golden_6]

But tourists have a right to housing stock too.

the problem is lack of housing stock. Not a problem of the wrong people using it.

Housing stock is of course is an issue. We’re seeing a further reduction in an already low pool of housing stock as investors enter the short term rental market instead.

When there’s a legitimate housing crisis and many Australians cannot get access to a permanent rental, tourists should not be given priority. It’s a partial fix to the overall problem.

 

[Seeds]

Housing stock is of course is an issue. We’re seeing a further reduction in an already low pool of housing stock as investors enter the short term rental market instead.

When there’s a legitimate housing crisis and many Australians cannot get access to a permanent rental, tourists should not be given priority. It’s a partial fix to the overall problem.

they were never given priority. You just want them penalised. Doing that prevents government from addressing the actual issue. Not releasing enough land.

 

[burge13]

they were never given priority. You just want them penalised. Doing that prevents government from addressing the actual issue. Not releasing enough land.

Land isnt the only issue

Timely builds. Dont think i know anyone that got their house built within a year of deadline let alone the actual deadline.

Tradies are shonkier than ever too. Cowboys charging top $ for s**t builds puts people off building at all.

Then of course builders going under despite charging the world. Mystifying this is possible with how much people are ripped off using them but here we are

 

[Theseventhhamster]

Huh?

Governments don't need to release land. It's sitting right there waiting in developers hands. You've fallen for obvious bullshit aimed at rezoning more land that they'll also just sit on and only release at prices they want.

 

[Seeds]

Land isnt the only issue

Timely builds. Dont think i know anyone that got their house built within a year of deadline let alone the actual deadline.

Tradies are shonkier than ever too. Cowboys charging top $ for s**t builds puts people off building at all.

Then of course builders going under despite charging the world. Mystifying this is possible with how much people are ripped off using them but here we are

Yes construction costs and fiscal policies are also an issue.l

 

[Seeds]

Governments don't need to release land. It's sitting right there waiting in developers hands. You've fallen for obvious bullshit aimed at rezoning more land that they'll also just sit on and only release at prices they want.

Agree the land releases arent sufficient. You also need developers to build and sell. But why arent they doing that?

 

[Theseventhhamster]

Agree the land releases arent sufficient. You also need developers to build and sell. But why arent they doing that?

To maintain high prices. Holding costs aren't a problem with the historic trajectory of house prices.

 

[Nuggs Bunny]

Governments don't need to release land. It's sitting right there waiting in developers hands. You've fallen for obvious bullshit aimed at rezoning more land that they'll also just sit on and only release at prices they want.

On top of that the edge of Melbourne is now Pakenham East, Kallako and Bacchus Marsh lmao, we're rezoning land for builds a good 10-15 years before basic infrastructure can catch up in the new areas so there's no way known that the government is holding back.

The real supply problem is the underdevelopment in the inner and middle ring suburbs, particularly the pocket between the Yarra, the M1 and the M3 in Melbourne. The new changes aimed at cutting councils out of the planning approval process should help speed this up somewhat, NIMBYs are s**t out of luck now.

 

[Theseventhhamster]

On top of that the edge of Melbourne is now Pakenham East, Kallako and Bacchus Marsh lmao, we're rezoning land for builds a good 10-15 years before basic infrastructure can catch up in the new areas so there's no way known that the government is holding back.

The real supply problem is the underdevelopment in the inner and middle ring suburbs, particularly the pocket between the Yarra, the M1 and the M3 in Melbourne. The new changes aimed at cutting councils out of the planning approval process should help speed this up somewhat, NIMBYs are s**t out of luck now.

Wallan! Yeah * the local, lack of density bullshit. plenty of scope for a heap of medium density stuff.

 

[Gigantic]

Land isnt the only issue

Timely builds. Dont think i know anyone that got their house built within a year of deadline let alone the actual deadline.

Tradies are shonkier than ever too. Cowboys charging top $ for s**t builds puts people off building at all.

Then of course builders going under despite charging the world. Mystifying this is possible with how much people are ripped off using them but here we are

Add to that - landbanking.

Developer land banking drives Australia's housing shortage

The practice of ‘land banking’ refers to the staged release of land by property developers in order to maximise their profits. Unbelievably, the National Housing Finance & Investment Corporation (NHFIC) has played down concerns that land banking holds back supply and pushes up house prices...

www.macrobusiness.com.au