Housing problems in Australia, two.

WELCOME TO BRISBANE AFFORDABLE RENTALS, YOU ARE INVITED. In this blog, we will discuss rental problems that we may incounter when renting, and the problems of running affordable rentals. We will also discuss, what the government can do to help the renters pay their rent, and the property owners run a better service to the renting community. 

Anyhow, we believe that the government Social Security System, can help both the people that are renting and the property owners. They should give more rent assistance to peple on low income that are renting, and they should abollish or modify the assets test on active rental properties, if they want the rental market stand on its own, so, to speak. For this reason, we are writing several articles, where we will talk about the rental problems and the Social Security System. 

This blog can be found at this link, http://affordablerentals.blogspot.com/))

And here are other links to our internet articles

http://menfranco-re.blogspot.com/, http://manneedsgod.blogspot.com,  http://menfranco.blogspot.com, 

http://ifyoubelieveingod.blogspot.com/, http://genzanoit.blogspot.com/, 

https://sites.google.com/site/prayersofreconciliation/,https://sites.google.com/site/menfrancoreconciliation/

This article can also be found at this link, Australia Housing Problems, Two. 

In Australia you can rent a house that you can afford. 

In Australia there are many types of housing for rent, but today there seems to be a shortage, so, it is not easy to find a house for rent. I believe that the reason of the shortage is there, because there is something wrong with the present government laws and the levies that they charge the landlords, and other anomalies, and this is what we are talking about here. 

Housing rental problems in Australia, two. 

Welcome to our article Australia Housing Problems, Two.

Dear readers, as I have said before, I want to inform you that I have followed the rental market for a long time, and I have written several articles about it, pointing out what I think can help to solve the problem. I have done that, hoping that someone in power takes notes of what I am saying, and does something about it, but so far nothing has happened. Anyhow, I believe that the main problem is that the Australian Social Security System must be equal for everyone, but it discriminates against the small investors away, to fix it they can start by abolishing the ASSETS TEST that keeps off the small investors that could have a property for rent. Anyhow, I will continue to write more rental articles, hoping that something positive happens, so, let me go on writing.   

Today I want to point out that one of the reasons why rents are high, it is because any type of housing costs a lot to build, therefore, when they are new, they cost a lot. But what about the older houses. Here I must say that existing houses and units cost a lot more than they should, perhaps the real estate agents are trying too hard to push the price up, and one day the prices may come down, or they may stop going up for a few years. So, those buyers that want to buy at all costs, better beware, because this can be coming sooner than you think.  

Anyhow, there are not enough houses being bult, and I wonder why they cannot be built and sold any cheaper. In the past whenever there was a shortage and the price of housing went up, they soon built more houses, and the price would return to normal. But today this is not happening, some people say that there are not enough tradesmen to build new houses, and not enough young people that want to be tradies and work on buildings. Anyhow, this is only one of the reasons, because there are many other reasons, why there are not enough rental properties on the market.

I believe that the reason why there are not enough properties, it is because the mum and dads, that are the greatest number of small investors, have been placed in a disadvantaged position and losing money, and at the same time they are being discriminated, as if it is their fault. When it is the fault of the government authorities that charge high levies, on affordable rental properties. Anyhow, once these small investors realize that they are overcharged and discriminated, they will stop investing in rental properties, and they might even sell them, because they are losing money. And this is another reason why there are not enough rental properties.

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Which charges and by-laws affect the rental market most.  

So, let us talk about which charges and by laws affect the rental market most in a negative way; and that is the reason why, it is not easy to fix, unless these laws are modified. I believe that there are at least two things that must be changed, for the rental market to be able to go back to normal, and this must be done soon. One is the assets test, and the other thing that hurts most is the land tax, that give the landlords nothing at all, but charge lots of money, just because you own a property, most of these properties are rental properties, therefore, the owners must charge more rent to pay for the lant tax.

Anyhow, we are continuing to study the Australian rental situation, but it is becoming clear that the rental market cannot go back to normal, because of these laws that charge lots of money, and put pressure on the landlords, who cannot do anything except charge more rent to pay for those levies.

So, this rental problem cannot be solved, unless the present governments change these negative laws, and makes the rental market cheaper to run, and it needs also to change or abolish the ASSETS TEST on affordable rental properties. So that those people that are on the rental market, like the pensioners, the disabled people, the jobseekers, and other people that during their lives need government help. When they apply for help, they cannot have it, because the assets test disqualifies them, even when they cannot earn money, from their rental properties. So, they may be forced to sell, and another rental property disappears from the rental market.

Now, I know that you start hating me, because you think that it is not possible that people that own properties need government help, but they do. You see the small investors, that have only a property for rent and no other income or funds, they need the government pension to survive, and this can be a real problem, because of the assets test, that discriminates against the property owners.  

Anyhow, to understand what I am saying, you must imagine what is really happening in the rental market, because there is not enough money left, after the owner pays the levies on that property, and they may earn only one or two per cent of the value of the property, and most of them may decide to sell the property. So, we can say that this is the reasons, why today there are less properties for rent.

You see, the ASSETS TEST, is set in a way that pretends that the owners can earn about 8% of the property value, when in most case they earn only 2% of the property value. So, if they want more rental properties on the market, the government must abolish the ASSETS TEST on affordable rental properties.

Here I know that most of you are not convinced about this, so, I need to write a few examples, and step by step explain how I have reached this conclusion, but this blog is becoming too long. So, I will write another blog or two if necessary to explain what I am saying. Meanwhile remember that the government Social Security System must be equal for everybody, but it is not equal. And it creates problems that must be fixed to run smoothly. See you in our next article, Housing Problems causes in Australia.

To see more click on this link,  Australia Housing Problems, Two.

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Housing problems in Australia, one.

WELCOME TO BRISBANE AFFORDABLE RENTALS, YOU ARE INVITED. In this blog, we will discuss rental problems that we may incounter when renting, and the problems of running affordable rentals. We will also discuss, what the government can do to help the renters pay their rent, and the property owners run a better service to the renting community. 

Anyhow, we believe that the government Social Security System, can help both the people that are renting and the property owners. They should give more rent assistance to peple on low income that are renting, and they should abollish or modify the assets test on active rental properties, if they want the rental market stand on its own, so, to speak. For this reason, we are writing several articles, where we will talk about the rental problems and the Social Security System. 

This blog can be found at this link, http://affordablerentals.blogspot.com/))

And here are other links to our internet articles

http://menfranco-re.blogspot.com/, http://manneedsgod.blogspot.com,  http://menfranco.blogspot.com, 

http://ifyoubelieveingod.blogspot.com/, http://genzanoit.blogspot.com/, 

https://sites.google.com/site/prayersofreconciliation/,https://sites.google.com/site/menfrancoreconciliation/

This article can also be found at this link, Housing Problems in Australia, Article One.

In Australia you can rent any house that is on the market for rent. 

Today, to attract the attntion of the readers, we are using this photo above. Now this property is not for rent, and perhaps it will never be for rent. We do not know who owns it, but very likely is a rich owner that lives in it. But there is nothing wrong to look at it, and wish you can have something like this one day. We hope you see what we mean. 

 

Welcome to our article, Housing Problems in Australia, Article One.

Dear readers, I want to inform you that I have followed the rental market for a long time, and I have written several articles about it, pointing out what I think needs improvement. I have done that, hoping that someone in power takes notes of what I am saying, and does something about it, but so far nothing has happened. Anyhow, I will continue to write more article, hoping that something positive happens, so, let me go on writing. 

Today in Australia, there are less properties for rent, and this is causing problems to people that are renting. So, we want to look at the reasons why this shortage is happening, because in the past, rental properties somehow found their own balance, and this problem was less acute, so to speak.  

Now, if we want to know why this is happening, the best way is to do it, is to look at what is changed and how the whole country is supposed to be run, and then, when we find the reason that has caused the rental shortage, we can suggest what could be done to fix it.

I suppose that if you have had something to do in renting a property, you can already guess, what the reasons of this rental shortage are. But here we need to look at those reasons closely, to make sure that what we are saying is correct.

So, let us look at how the Australian economy is run. Australia is a free democratic country, and the economy is run freely from all individuals. Now what happens in a free economy, is that all individuals are free to do what they want, but at the same time they are competing with other individuals that do the same thing, so, the price becomes set from the supply and demand market, and those individuals that are competing to sell the product they produce.

Of course, whatever business you are in and whatever you sell, you need to make some money to be in business, if there is not enough money the business you are running cannot survive, and you are forced to close whatever you are doing. I am saying this because, this is what happens in a capitalist economy. And this is good because the economy finds its own ways how to set the price and survive. But there are times, when things do not run the way they are supposed to run, and this will create problems, like the problem we are having now with rental properties, so, let us look at what is happening, because there is always a way how to improve the situation.  

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Now let us look at rental properties.

Having said that Australia uses a capitalist system to run the economy, now let us look at what is happening in the rental market, and why today there are not enough properties for rent.

Now what I am saying hereunder is the way that I remember. I remember this well because I have followed the rental market during my life, so, I remember that rents have always gone up, just like everything else. This was until the year 2010 or so, and since the year 2010 rents have not gone up as much as everything else, so, today rents need to go up, to reach the level where investors think that they can run a rental business without losing money. But the people that are renting do not see this need, and they think that they are paying too much rent already. Perhaps thy are used to cheap rentals, and now the rents are going up, so, they are complaining about it, and they say that they cannot afford to pay the rent. So, this rental problem is becoming a huge problem, and nobody seems to have a lasting solution.

Today, some political parties want to freeze the rent, others want to put a ceiling how much the rent can be increased, the present government want to build lots of affordable rental run from the government, and many other things. The only thing they are not talking about, is why there are not enough affordable rental properties on the market. So, let me explain what the reasons are.

I start believing that the reason for this rental shortage, can be attributed to the failure of the past governments for not making balanced laws for rental properties, and charging the present property owners high levies, without thinking the consequences. 

You see, properties owners can be said that they are running a service for the community, and if you run a service, you must make some money, otherwise you are forced to close. Here we can say that this is what has been happening, and for this reason, today there are not enough rental properties on the market. We can add here that a democratic capitalist country, will always find ways how to supply what needs to be supplied, unless there are laws that stops them earning enough money to run their business.   

Here I must say, that if the government in charge want to solve the rental problems, they must make better laws that aim to help to property owners to balance their housing business better. If they do that, then in a few years there will be enough housing on the market, and the problem is solved.

I suppose that I need to explain this better, but I believe that this article is becoming too long, so, to explain my point of view I will write more articles. But before I sign off, I want to say what I have noted. So I say, that to start improving the rental situation, the government of the day, could start abolishing the ASSETS TEST on affordable rental properties, because the assets test scares off most small investors, that could otherwise have a property for rent. 

To see more click on this link, Housing Problems in Australia, Article One. 

See you next time.  

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