Invest
Why proposed changes will cost tenants thousands
New legislation by the Palaszczuk government, which vows to ensure safety and fairness in the community, could end up costing tenants up to $5,000 and result in job losses, new research has suggested.
Why proposed changes will cost tenants thousands
New legislation by the Palaszczuk government, which vows to ensure safety and fairness in the community, could end up costing tenants up to $5,000 and result in job losses, new research has suggested.
The government’s proposed changes include the loss of landlord’s right to refuse pets, the introduction of tenants rights to modify property, new minimum housing standards and the inclusion of prescribed standards and to be in a certain state of repair.
While the changes in theory are a good thing for renters, property market research firm and buyer’s agency Propertyology believes the changes could cost tenants in the long term.
Propertyology head of research Simon Pressley said the mass exodus would cause a drastic undersupply of rental properties in a state with the nation’s highest rental population.
He also highlighted that a reduction in investor demand could lead to lowering employment from industries that rely on property such as construction.
“These ill-conceived reforms will create a major deterrent for any Queensland real estate-related business, which means lost employment opportunities for professions such as conveyancers, building and pest inspectors, and property managers,” Mr Pressley said.
Mr Pressley said that even if a conservative estimate of 5 per cent of landlords sell their properties, that would result in 38,000 dwellings removed from the rental pool.
“To put that into perspective, those 38,000 homes provide shelter for about 100,000 people. Where are they supposed to go when governments only supply 2 per cent of rental properties?” Mr Pressley said.
Mr Pressley also highlighted the proposed changes could see the power shift from owners to tenants despite tenants not owning the property.
“The changes will mean that, even though they aren’t the owner of the asset, tenants will have the dominant hand when it comes to what they may do to a property and how long they live there for,” he said.
“While tenants might currently think this new legislation is a dream come true, the probability is they will be faced with extreme household budget pressure sooner rather than later,” Mr Pressley concluded.
About the author
About the author
Property
Aussies swap housemates for home ownership
The number of younger Australians looking to enter the property market in the next five years has doubled, as COVID-19 restrictions sees home ownership goals increase, according to research released ...Read more
Property
Falling loan deferrals prove market recovery: REIA
The reduction in loan deferral defies doom and gloom forecasts in the property market, the Real Estate Industry of Australia has said. ...Read more
Property
Why are expats returning to property market?
Expats are returning to Australia in droves, eager to put their money into safe investments. ...Read more
Property
Stamp duty to be phased out under new proposal
The NSW government has stated that it could phase out inefficient taxes such as stamp duty as it looks to recover from the COVID-19 pandemic. ...Read more
Property
Melbourne rents continue to decline
While most capital cities recorded increases in asking rents, Melbourne continued to see declines in both houses and units, according to latest data from SQM Research. ...Read more
Property
Why investors should focus on the next 1-5 years
Investors are being urged to look beyond their own backyards into opportunities over the next one to five years. ...Read more
Property
Distressed sales fall to pre-pandemic levels
Urgent property sales have dropped back to pre-pandemic levels in most cities – proof of Australia’s continuous recovery from the effects of the COVID-19 outbreak. ...Read more
Property
Top tips for managing your own property portfolio
Managing investment properties can feel very much like rolling a dice, you can never be quite sure what you’re going to encounter and, in most cases, you possess minimal control over what happens ne...Read more
Property
Aussies swap housemates for home ownership
The number of younger Australians looking to enter the property market in the next five years has doubled, as COVID-19 restrictions sees home ownership goals increase, according to research released ...Read more
Property
Falling loan deferrals prove market recovery: REIA
The reduction in loan deferral defies doom and gloom forecasts in the property market, the Real Estate Industry of Australia has said. ...Read more
Property
Why are expats returning to property market?
Expats are returning to Australia in droves, eager to put their money into safe investments. ...Read more
Property
Stamp duty to be phased out under new proposal
The NSW government has stated that it could phase out inefficient taxes such as stamp duty as it looks to recover from the COVID-19 pandemic. ...Read more
Property
Melbourne rents continue to decline
While most capital cities recorded increases in asking rents, Melbourne continued to see declines in both houses and units, according to latest data from SQM Research. ...Read more
Property
Why investors should focus on the next 1-5 years
Investors are being urged to look beyond their own backyards into opportunities over the next one to five years. ...Read more
Property
Distressed sales fall to pre-pandemic levels
Urgent property sales have dropped back to pre-pandemic levels in most cities – proof of Australia’s continuous recovery from the effects of the COVID-19 outbreak. ...Read more
Property
Top tips for managing your own property portfolio
Managing investment properties can feel very much like rolling a dice, you can never be quite sure what you’re going to encounter and, in most cases, you possess minimal control over what happens ne...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
