WELCOME TO AFFORDABLE RENTALS BRISBANE

YOU ARE INVITED TO BROWSE AS LONG AS YOU LIKE. In this blog we will write articles about the Social Security System and those issues, that affects people that rent, and also those that own properties for rent. We hope that our articles will help them understand the situation better. L S H.

Tuesday, July 11, 2023

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. 


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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