Tasmania landlords now barred from increasing rents in six month intervals; But landlords may now evict tenants on a non-fixed lease if a family member of the landlord wants to move in
Tweet Topic Started: 14 Oct 2013, 12:44 PM (2,047 Views)
My worry about Tassie is the demographics. The population is not growing. If a place is not becoming more relatively desirable, then you *need* a much higher yield to make it a real proposition. Same with regional areas. If the town is shrinking, you probably need 10% gross yield or even more.
+1 there's always a reason for something being cheap..
In terms of hedging (for an absolute full blown bear) i reckon it's not a bad insurance policy just in case things go very wrong for them though
herbie
14 Oct 2013, 07:27 PM
Can you give some tips where Mel?
i honestly don't remember which one it was Herbie! Being lazy i took a pic of the area name with my phone then deleted it due to phone memory being full.. I do remember i stumbled onto the area through an article i found via a google search of 'cheapest homes in Australia' (or something similar) though
Rent controls are more likely to be a part of grindingly deflationary depression than an astronomically inflationary one is my best guess.
Anytime government sticks it beak into how you rent out a property it's a form of rent control. Unfortunately in this nation we have a welfare system that is far out of proportion with what is actually needed. It has found it's way into the income streams of half of the population. This government (Labour or Liberal) has a track record going back decades or looting the business sector and high wage earners to fund its social security payments. Which for half probably include rent assistance payments.
Rent assistance is capped but based on the rent paid. How do you think the federal government will keep these payments in check in the future? 1/ Allow old age pensioners, students, the disabled, and the unemployed, to become homeless. 2/ Restrict the amount of rent an owner can charge. ie, loot the small business sector.
This sort of thinking is what must be factored into a small business plan. It can't be laughed off or dismissed out of hand. Unless of course you are just a ponzi investor after a quick capital gain and don't care about returns in a decade or two.
As for "grindingly deflationary depressions" They tend to always follow "an astronomically inflationary one"
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
Anytime government sticks it beak into how you rent out a property it's a form of rent control. Unfortunately in this nation we have a welfare system that is far out of proportion with what is actually needed. It has found it's way into the income streams of half of the population. This government (Labour or Liberal) has a track record going back decades or looting the business sector and high wage earners to fund its social security payments. Which for half probably include rent assistance payments.
Rent assistance is capped but based on the rent paid. How do you think the federal government will keep these payments in check in the future? 1/ Allow old age pensioners, students, the disabled, and the unemployed, to become homeless. 2/ Restrict the amount of rent an owner can charge. ie, loot the small business sector.
This sort of thinking is what must be factored into a small business plan. It can't be laughed off or dismissed out of hand. Unless of course you are just a ponzi investor after a quick capital gain and don't care about returns in a decade or two.
As for "grindingly deflationary depressions" They tend to always follow "an astronomically inflationary one"
Think it's a long stretch of the bow to equate 'rent assistance' to 'rent controls' ?
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
Lots of new rules for tassie rental properties, better hope those tassie cronies dont head your way frank, did you see all those new rules mate.
Waterproof and securely built, how will you get around this one.
Clean and in good repair, now what.
Equipped with bathroom AND toilet- now where did I put that bucket.
Supplied with electricity and one fixed form of heating. bit hot up there, maybe they will change that one to cooling- duct tape, chinese go lo fan , problem solved , does a solar panel count as electricity.
I dont think they should be able to limit increases or make it twelve months before increasing rents, what if you sign a twelve month and somebody bails out in six, if I can get an increase then and maybe recoupe some loses then why not. I think we should bring the same rule in for politicains wages, except make the intervals at least six years, and while we are there , make it increased pay only on performance, wont be too many pay rises going on now.
Equate the two? There is no equation relating the two, rent assistance is simply another variable in the rental equation itself. As is negative gearing, council rates etc. If you were to remove negative gearing do you think it would effect the number of investment properties? If you removed rent assistance do you think that would effect the amount of rent charged across the board?
It is well known that the more expensive properties draw in less rent per dollar cost. This is directly related to the amount of money people have in their pockets today. It has created a thiving new business where lease holders of large houses rent out rooms for a modest profit. There is nothing the LL can do about this in most cases, they have to sit back and watch their water and wear and tear costs rise as more as more people pile into their property. This will spread down to the less expensive properties as the economy gets weaker and weaker.
Rent assistance is a new phenomina, it didn't exist last time Australia instituted controls on rents. Of course at some point in the future it will vanish, as will all government handouts, and probably the government as we know it, but until that point it will be defended. Rent assistance is just another factor complicating what should be a simple market. This is not the time in history to be running a small business, small business has no political clout, and therefore no protection against an endebted government forced to raise funding any way it can.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
Equate the two? There is no equation relating the two, rent assistance is simply another variable in the rental equation itself. As is negative gearing, council rates etc. If you were to remove negative gearing do you think it would effect the number of investment properties? If you removed rent assistance do you think that would effect the amount of rent charged across the board?
It is well known that the more expensive properties draw in less rent per dollar cost. This is directly related to the amount of money people have in their pockets today. It has created a thiving new business where lease holders of large houses rent out rooms for a modest profit. There is nothing the LL can do about this in most cases, they have to sit back and watch their water and wear and tear costs rise as more as more people pile into their property. This will spread down to the less expensive properties as the economy gets weaker and weaker.
Rent assistance is a new phenomina, it didn't exist last time Australia instituted controls on rents. Of course at some point in the future it will vanish, as will all government handouts, and probably the government as we know it, but until that point it will be defended. Rent assistance is just another factor complicating what should be a simple market. This is not the time in history to be running a small business, small business has no political clout, and therefore no protection against an endebted government forced to raise funding any way it can.
We've got some bulls on here who reckon they're rocket scientists GB. 'N we've got some bears on here who reckon they're rocket scientists too. ('N pretty obviously they aren't both right.)
Now if ya like me 'n know ya NOT a rocket scientist, then hedgin' ya bets sounds sensible - To me?
'Course if ya a bull or a bear what reckons ya are a rocket scientist - A particularly insightful type what CAN see the future in ALL its 'glory' - then good luck ta ya.
But DON'T whinge ta me if ya fuck up 'n ya ain't hedged.
PS (my current position):
No debt 50% cash 50% residential property
PPS (future most likely move): Add ta me debt free housing.
PPPS: I'm Brisbane based; I'm retired (permanently now I hope); I'm no longer young; I really CAN'T afford ta make any major financial fuckups.
Generally, there is soo much to protect the "poor" tenants , yeah some are genuinely in the skids...my arse ain't pucking..nothing to see.
herbie
15 Oct 2013, 01:23 PM
We've got some bulls on here who reckon they're rocket scientists GB. 'N we've got some bears on here who reckon they're rocket scientists too. ('N pretty obviously they aren't both right.)
Now if ya like me 'n know ya NOT a rocket scientist, then hedgin' ya bets sounds sensible - To me?
'Course if ya a bull or a bear what reckons ya are a rocket scientist - A particularly insightful type what CAN see the future in ALL its 'glory' - then good luck ta ya.
But DON'T whinge ta me if ya fuck up 'n ya ain't hedged.
PS (my current position):
No debt 50% cash 50% residential property
PPS (future most likely move): Add ta me debt free housing.
PPPS: I'm Brisbane based; I'm retired (permanently now I hope); I'm no longer young; I really CAN'T afford ta make any major financial fuckups.
Shit Herbs You ain't going too bad, you no silly sausage ex dirty miner
You certainly don't need to get into large amounts of debt in your phase of life. You deserve peace on those golden oldie yrs.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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