Invest
A ‘perfect storm’ for mum and dad investors: NSW rental moratorium
The NSW government’s decision to extend its rental moratorium has been hit with criticism, with flow-on effects set to severely impact mum and dad investors.
A ‘perfect storm’ for mum and dad investors: NSW rental moratorium
The NSW government’s decision to extend its rental moratorium has been hit with criticism, with flow-on effects set to severely impact mum and dad investors.
The Real Estate Institute of NSW (REINSW) is calling for an urgent review of the state government’s decision to extend the rental moratorium, noting that the government’s “failure” to explain the rationale is a “critical concern”.
The REINSW suggested the timing couldn’t have been worse, as it coincides with the end of the banks’ loan repayment waiver. It also comes at a time of eased restrictions in NSW, as well as the recent decrease in the national unemployment rate to 6.8 per cent, the REINSW said.
REINSW chief executive Tim McKibbin said, “Contrary to the NSW government’s obvious stereotyping, around 80 percent of landlords in New South Wales are mums and dads or self-funded retirees who are either paying off a single property investment or [depending] on it for income.”
This extension will essentially “create a perfect storm and send many mums, dads and retirees broke”, the CEO added.
“This is a case of logic being ignored, livelihoods being placed at unnecessary risk and, worryingly, a refusal to undertake the proper consultation.
“How are these mum and dad investors, many who have lost their jobs, going to cope? The banks have already made clear that the cold hard reality for many landlords is that they are going to have to sell their property to retire debt. The nest egg people have worked so hard to achieve, and have sacrificed so much for, will be lost.
“The Department of Fair Trading has informed the REINSW clearly that if even if a landlord has lost their job, if the hot water system breaks on their property, they have to find the money from somewhere to fix it.”
Mr McKibbin said it is “grossly insulting” for the minister to assert that the extension of the rental moratorium is in support of both tenants and landlords
“To date, the government has provided the Tenants Union $13.5 million to assist tenants. Not one cent has been provided to assist landlords. It undermines the absolutely critical role landlords play in society: providing choices for people to have a roof over their heads,” he said.
“In the end, tenants will suffer, too. Fewer properties available for rent at this incredibly delicate economic time pushes more people onto the streets.”
In conclusion, Mr McKibbin said the REINSW has repeatedly sough to consult with both the department of Fair Trading and the minister “to explain the impacts of this measure on the state’s landlords and tenants, but our efforts, despite the promises made, have been met with a closed door”.
“Instead, the state’s largest real estate industry body, like the rest of the community, is left to process the recklessness of a decision made with no industry consultation, no basis in data and with clearly no understanding of the broader industry and market ramifications,” he said.
“We expected better from the NSW government.”
The comments from Mr McKibbin and the REINSW follow the Real Estate Institute of Victoria and Real Estate Institute of Western Australia slamming their state governments over similar moves.
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more
Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more
Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more
Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more
Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
