After years of record-low interest rates, the Reserve Bank started lifting the official cash rate in May to combat rising inflation.And there will be many more rate rises to come, with RBA governor Philip Lowe indicating the cash rate could reach 2.5 per cent .
It is difficult to determine exactly how much rate rises have influenced rental increases so far, particularly as rents might be increased at different stages during the year. But prices continue to rise.
Why?
Allan thinks that someone’s home should be making him money. Allan is participating in an immoral system of exploitation.
Why not pass on his tax break too
Allan is a dxxk
Because he's a parasite that provides no value at all to society?
Fun fact. Raising interest rates actually decrease rents.
ShaneOliverAMP
Heres why... A lover of money.
How is this news?
Really time the greedy inhuman unAustralian community hating landlords were taxed out of existence. What a disgrace.
You gotta be savvy. There's still plenty of 2 & 3BR houses where I live 12km from Melbourne CBD. I feel quite safe here. Suburb has a totally undeserved reputation for being bad, maybe that's why it's still available. I've never been happier to be here!
Landlords and property managers who don’t respect their tenants will always lose. Pass on the interest rate hikes mate, lose your long term tenant and if the market isn’t tight, the property will sit empty for weeks/months. Further losses. You’ll have to sell.
Struggling on $90,000, wonder how people on pensions manage 🤔
You’re a real fucker Allan.
It's a very tough world for Landlords because often the house being rented is their retirement investment that they have put all eggs into, tenants can cause havoc, new laws, Land Tax, interest rate rises, repairs....etc. People never talk about Landlord hardships.
Interest rates are going up to slow inflation, it is very important to pass the increase on to tenants so they are impacted by the rise and dlow their spending. Landlords provide a service that is not provided by anyone else. God bless Landlords.
If yiu can’t afford to keep something, you sell. Time to fix negative gearing me thinks!
I’d have no objection to passing on rate hikes if landlords fixed the rental properties to a healthy living standard, where everything works, is spotlessly clean and hygienic, are insulated and weather proof. I’ve read far too many stories of unhealthy abodes w high rents.
You can only raise the rent on a sitting tenant in line with market rates. If your landlord is dumb enough to tell you the rent is going up due to interest rates, point them to the Residential Tenancies Act.
Because he failed to understand the nature of the beast that is being a landlord. He read somewhere that this is how to make bucketloads of money.
Isn’t the rental market dictated somewhat by supply and demand? Allan’s tenants might take him to the residential tenancy tribunal. Increased mortgage repayments by the landlord is not a justifiable reason. Rents can be challenged if not at market rate.
Rental crisis is a result of housing un-affordability, which is caused by people like Allan having negatively geared properties. The more people who can’t afford to buy, more have to rent. Solution is to remove negative gearing and stamp duty.
Allan can sell his unit and stop contributing to the problem
Looks like Allan is in need of some Maoist re-education
Did he reduce them when interest rates went down to record lows, I bet he increased it then too, Allan looks like a c$nt.
'But because that interest rate will rise quite a bit, I'm going to have to pass it on to be able to continue surviving.' Such a unique perspective.
Why wouldn't he?
Negative geared houses should be made available for long term rentals, Airb&b's are making it difficult for people to live in towns they have to work in, employers are crying out for staff.
Lets get some perspective here of divestment costs. If they sell the appartment & buy another they are up for 3% real estate agent fees + 4% stamp duty on what they buy. Then you have conveyancing & mortgages to sort out including those cost too.
“Man can’t afford investment property” Is not a story
Allan is now famous for: 1. Passing the interest rate hikes to his tenant. 2. Probably not reducing the rent when interest rate reduced. 3. Thinking that investing should never lose money. Allan should consider suing ABC.
And what a great and not at all inflammatory photo you’ve chosen to accompany the story. A very happy looking man.
Surely Allan knows that he can negatively gear the tax increase. Allan sounds like he’s making a sorry excuse to gouge his tennant.
BTW does this blow the silly assumption that it always boomers that indulge in investment properties and negative gearing?
'The apartment is negatively geared, so the rent he receives does not cover the mortgage repayments' huh? Negative gearing means his losses are treated as tax deductions. The Tax-payer will cover much of his losses ... now there's a real problem!
Greed....
Alan should sell up. Property investment isn't without risk
Allan believes that as an investor, he should never make a loss, so he passes his potential losses on to those who aren't on the property ladder. Don't be like Allan.
These people need to 100% lose their shirts. When did it become a thing to take the side of the speculator that gambled with more than they could afford to lose
Of course he would. Pure greed.
Looks like he’s struggling to stifle a laugh there.
Hope they vacate and it sits empty for months Allan
But Albo promised he was going to fix all this - maybe he should stay home for 5 minutes & do some work instead of flitting around the world & sending all our money overseas...
'because he can'. Saved you a click.
Sounds like ole mates is up to neck in debt, pop goes the weasel (the dance stops).
'The apartment is negatively geared, so the rent he receives does not cover the mortgage repayments.' Allan shouldn't own an apartment he doesn't live in and can't afford. auspol
Good on you champ
Its okay, we've already worked our why.
change the whole system so people can afford a home costing like a nice car and the money the save can be invested in off world mining for rare earths minerals unlike carbon cannot be extracted from thin air or helping other parts of the world develop sustainability balance
The rental market is irrational. Their prices go up when interest rates are low and when interest rates are high(er). Rent does not compete on a market for good tenants so as to offer lower rent, only higher. The flaw here is that It's an investment that has only gone up in value
Stop negative gearing..any tax cuts from.mortgages should be to owner occupiers.. Govt needs to take responsibility back for public housing and not expect investors to supply the rental accommodation..this is why rents are so high and properties are hard to find..
And he looks just devastated...
That's not what 'negatively geared' means.
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Twitter headline: Allan plans to pass on the interest rate hikes to his tenant. Here's why Actual article headline: Rising interest rates could drive rents up as landlords also struggle to cover their mortgages
Maybe Allan should sell the apartment in Sydney?
Allan is price gouging.
Did he lower the rent each time interest rates declined the last five years?
Bottom line is a landlord uses the renter of his/her property to pay off their own mortgage under the guise of it being an investment property with benefits. Opportunity to raise rent?..of course they will. 100% a landlord's market atm with the renter being held at their mercy.
Absolutely agree.
It is a business,not a charity.
So rents go up due to rarity (supply and demand) giving landlords a profit bonus. Interest rates go up so those with a mortgage on their investment property pass that on to the tenant and keep their profit bonus. Those without a mortgage get extra profit. Sounds legit.
Don't forget to tip your landlord
Because Allan is a parasite sucking the life out of his host/victim?
As long as he adjusts it for the tax deduction he receives. 🙄