Rent too damn high - but why? Less than 1% of Sydney rental properties affordable on low incomes; Sydney's high rents force many low earners into rental stress
Tweet Topic Started: 29 Apr 2013, 08:50 AM (5,143 Views)
Never let the facts get in the way of a good "fuck the bludgers" narrative.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
A rental accommodation shortfall across Australia has resulted in a 14 per cent drop in short-term room rentals since last year, according to a recent survey.
Director of easyroommate.com.au, Jonathan Moore, says the number of properties available for short-term rental has fallen from 34 per cent to 17 per cent in just 12 months.
He called on homeowners to consider short-term room rental as a way to cash in on their spare rooms without any long-term commitment.
“With the number of individuals looking for shared accommodation in excess of 18,000, demand for accommodation is far outstripping the number of properties available,” Moore says.
“There are currently approximately three individuals searching per room available. With such high demand, if potential landlords are considering renting out their spare room but are not looking for a long-time commitment, short-term rents can help provide them with a temporary income boost,” Moore says.
He says while a normal tenancy within a shared apartment typically lasts a year, a short-term rental tenancy can last from one week up to six months and is typically used to fill rental voids.
“The short-term option is extremely popular amongst current tenants, with 72 per cent of the current short-term rental listings on the site offered by existing flat sharers. This was followed by live out landlords, who attribute to 24 per cent of the short-term rentals available.
“A short-term tenancy is a fantastic way to allow people to move to a new area without committing, and more and more property owners need to become aware of this.
“Whilst short-term rentals are offered throughout the country, the majority can be found in major the cities. This can be attributed in part to increased numbers of people relocating for career purposes and requiring immediate accommodation,” Moore says.
Greens Senator Scott Ludlam says household rental costs have doubled across the country and tripled in Queensland, Western Australia and the Australian Capital Territory.
"Rents across the country have doubled since the year 2000, but in the ACT, Queensland and WA they've actually tripled," Senator Ludlam told the ABC's The World Today program on August 28.
"It's actually been a disaster for the third of Australian households that rent."
Senator Ludlam made the statement after The Greens launched a policy document aimed at easing rental circumstances for Australia's low income earners.
The claim: Greens Senator Scott Ludlam says rental prices have doubled across the country and tripled in the ACT, Queensland and WA since 2000. The verdict: In dollar figures, national rental rates have doubled since 2000 but they have not tripled. According to the real value of the dollar which takes inflation into account, rents have not doubled or tripled anywhere in Australia.
Real estate figures
ABC Fact Check asked Senator Ludlam for the basis of his claim.
His office said he used rental rates based on capital city figures from The Real Estate Institute of Australia. No state-wide figures were available, a spokeswoman said.
ABC Fact Check obtained weekly rental figures on two-bedroom units and three-bedroom houses from The Real Estate Institute. 2000 2013 Percentage change Houses Units Houses Units Houses Units All capital cities $198 $187 $389 $401 96% 114% Perth $164 $137 $480 $450 192% 228% Brisbane $185 $150 $360 $360 95% 140% Canberra $200 $175 $450 $435 125% 149%
For a second opinion, ABC Fact Check approached RP Data, a national property data agency, which performed an analysis on the weekly rental rates of all dwellings in capital cities across Australia from August 2000 to August 2013.
The figures were as follows: 2000 2013 Percentage change All capital cities $286 $472 65% Perth $258 $505 96% Brisbane $239 $422 77% Canberra $292 $514 76% Rental increases since 2000
The RP Data figures show that since 2000, rental prices for all dwellings have increased by well over half. In Perth they almost doubled.
The Real Estate Institute figures show the weekly rental costs of units have more than doubled across Australia and the figure for houses was just short of doubling.
In no case did all dwellings triple in rental costs in the ACT, Queensland and Western Australia. Unit rentals only tripled in Perth throughout this period. Real cost vs dollar cost
Professor Michael Darcy from The University of Western Sydney told ABC Fact Check that comparative statements about rental increases should be adjusted for inflation.
Professor Darcy, who specialises in urban studies and housing policy, calls this a "real value" comparison.
"If you want to compare the price of something across a period of time you have to take into account inflation," he said.
"If rents have tripled while the broader cost of living has also tripled then effectively the real cost of rent hasn't changed."
In the following table, ABC Fact Check calculates how inflation would have changed the results reported by RP Data. 2000 2000 (Inflation adjusted to 2013)
As shown in the above table, rents have still increased using figures that take inflation into account.
However they have not doubled or tripled across Australia or in any capital city.
Across Australia, rents increased 15 per cent above the rate of inflation. In Perth they increased over 30 per cent and in Brisbane and Canberra around 20 per cent.
ABC Fact Check asked Senator Ludlam why he didn't take inflation into account.
His office said he "simply looked at and reported increases to rent".
His spokeswoman said the consumer price index, a common measure of inflation used by ABC Fact Check in its calculations above, doesn't adequately measure or reflect house price inflation.
If the CPI did reflect house price inflation, then it would be much higher than 2 to 3 per cent a year, she said. The verdict
Senator Ludlam exaggerated by saying rents have doubled across the country and tripled in ACT, Queensland and Western Australia without taking inflation into account.
I apologise if it's been posted already somewhere else
"If man is to survive, he will have learned to take a delight in the essential differences between men and between cultures. He will learn that differences in ideas and attitudes are a delight, part of life's exciting variety, not something to fear." - Gene Roddenberry
"Balloon animals are a great way to teach children that the things they love dearly, may spontaneously explode" -- Lee Camp
Unfortunately, the amount we spend on welfare is unlikely to decrease any time soon... In fact, if our aging population is anything to go by, it may increase significantly.
Social security and welfare
Assistance to the aged.....................................$54.8 billion
Assistance to veterans and dependants.........$7.0 billion
Assistance to people with disabilities............$25.5 billion
Assistance to families with children................$34.9 billion
Assistance to the unemployed and the sick.....$9.6 billion
Other welfare programs.....................................$1.6 billion
Assistance for Indigenous Australians nec......$1.0 billion
General administration......................................$3.7 billion
ABC Interactive Budget 2013 - Where will your taxes go?I thought the state and local governments receive a lot of their income from local rates and duties, but the federal government spends close to the aged care assistance, on state and local governments as something called General Purpose Inter-Government Transactions @ $52.4 Billion
Looking down the list, we spend almost nothing on the unemployed. It's less than we spend on foreign aid and immigration.
And the unemployed spend their money actually in australia, at actual retailers or to australian landlords.
"If man is to survive, he will have learned to take a delight in the essential differences between men and between cultures. He will learn that differences in ideas and attitudes are a delight, part of life's exciting variety, not something to fear." - Gene Roddenberry
"Balloon animals are a great way to teach children that the things they love dearly, may spontaneously explode" -- Lee Camp
Perhaps it's time the church started paying taxes or perhaps sold down some of their multi million dollar property portfolios if they really are that concerned for the welfare of the poor.
No the poor would just waste the money, and why would you want poor people living in Sydney????? That just does not make any sense at all. The poor can not afford to live in Sydney they would just take up space that the rich could be using. Just think if you where a business owner in Sydney and some fuckwit moves all the wealthy people out of your area and moves a bunch of dole bludgers in. Your standing in your store no money is rattling through the till. You have to lay off your staff and can no longer buy stock. The landlord rings up and says i have not received the rent this week what is going on?? You say the socialist politburo has decreed that only poor people can live in this area. And they do not have any money to spend in my shop I am sorry but i can't pay your rent and i am applying for the dole and state housing. Oh dear. Peter :pop: Onward and upward dear comrade.
Kulganis
6 Sep 2013, 08:31 PM
I have to. Saw the title, thought of this:
I apologise if it's been posted already somewhere else
It is funny though, Jimmy Mcmillan, the guy in the video, was fighting an eviction in 2011.
Mcmillan claims that the landlord wanted more rent out of the apartment, though the landlord is claiming that it isn't Mcmillan's primary residence, which under NY state laws means the he isn't entitled to the rent controlled apartment.
The average rent in the area was US$3,500/m and he was paying US$872/m
"If man is to survive, he will have learned to take a delight in the essential differences between men and between cultures. He will learn that differences in ideas and attitudes are a delight, part of life's exciting variety, not something to fear." - Gene Roddenberry
"Balloon animals are a great way to teach children that the things they love dearly, may spontaneously explode" -- Lee Camp
I apologise if it's been posted already somewhere else
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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