Height of lunacy or just a funny read..?

[Harris]

From news.com.au
http://www.news.com.au/business/money/story/0,25479,23553162-14327,00.html

By Clare Masters (she really needs to get her head out of her rear side- read below)


Property agents cash in on housing squeeze

REAL estate agents have been caught using scare tactics to prey on unsuspecting tenants as figures show the housing squeeze has led to rents increasing by almost 20 per cent.

Two real estate agents have been sprung scheming to gouge more money out of battling renters already facing a tight market.

One agent was spotted spruiking for more money with a sign in a window telling landlords, "Your rent should be increased now!''

Another sent out a letter warning tenants who don't pay on time they would face a rise and not be recommended for other properties.

The unscrupulous tactics come at a time when renters face sky-high rents. New Residex data shows rents in Sydney have risen up by 16.5 per cent in just 12 months, with the medium rent at $460, a $10 rise since December.

The State Government yesterday condemned the agents, with Premier Morris Iemma saying, ``We can't have over-zealous real estate agents putting unreasonable pressure on tenants'' and Housing Minister Matt Brown labelling the letter as ``ill conceived and threatening''.
But they were slammed by tenancy advocates who said NSW had the weakest protection of all the states and current laws were weighted in favour of landlords.
``In NSW there are no limits on the frequency and amounts of rent increase notices,'' the Tenants Union's Chris Martin said.
In one incident, an agent in Umina on the Central Coast put a sign in their window reading: ``Urgent! Attention All Landlords Due to increasing demand of quality tenants your rent should be increased now!''
Principal of Richardsons Real Estate Lois Jones defended the sign, saying: ``We don't create the market ... we are not calling for anyone to increase rents.''
When it was pointed out the sign said to do just that, she argued: ``They have a choice.''

 

[Aaron Sice]

hmmm - i wonder if this author is trying to get a place on Today Tonight?

 

[steveadl]

One agent was spotted spruiking for more money with a sign in a window telling landlords, "Your rent should be increased now!''

Well that's just good advertising! I'd say it would get a lot of LL's attention, and that's the idea!

Another sent out a letter warning tenants who don't pay on time they would face a rise and not be recommended for other properties.

Heaven forbid they should let them know potential consequences of their actions, how dare they! Only need to feel threatened by that if you aren't paying on time. My LL could send out a letter like that tomorrow and I couldn't care less, I'm a good tenant!

 

[DavidMc]

Heaven forbid they should let them know potential consequences of their actions, how dare they!

LOL! Kudos to you!

 

[jaycee]

this is what our media has come down to

 

[lizzie]

oh my heart bleeds for them - not!

i don't see in the article where it points out that interest rates have gone up 30% (or more) over the last 3 years, and that if the landlords don't pay the bank then the bank takes the house and the landlord gets a bad credit rating - where they can't borrow again.

what a load of crock.

 

[steveadl]

My heart bleeds for them more than u Lizzie. You accept the risk of rising interest rates when you purchase property. Suck it up.
No more sob stories from you thankyou......

Yes, and tenants accept the risk of rental increases when they decide to rent for a period/life. Yet widespread sobbing from them is considered ok. Right back at ya!

 

[Mrman]

What happens when the cost of milk, bread, meat etc.goes up because of higher petrol prices or drought?

People complain and get upset and then we move on. We don't really have a choice as the large supplying companies are just raising prices to account for more expenses.

Rental properties are the same but it seems that peoples mentality is to attack landlords as they are just human beings and should have more compasion whereas larger companies are money hungry, unstopable entities.

The real problem is people don't understand that when it comes down to supply/demand and the exchange of money for services, the same business rules always apply.

My question to all these people is:

"If someone owns a corner deli/snack bar and has to raise their prices to compete with supermarkets, fast food outlets and service stations, it's ok because they are just trying to keep their business going and earn a crust.

If someone buys an investment property, why should they not exercise the same rights that the deli/snack bar owner is entitled to?"

 

[silversands]

Hey Muzz, - don't like haearin' m don't be a readin' m. Your choice no???
Hey Lizzie you always put a smial on my dial.

 

[Player]

Hi all,

Up until two years (or so) ago, rents have been restrained for near on a decade. So now it is a matter of playing catch-up.

Interest rates rise and so do rents. There will always be harvesters of tall poppies who sometimes choose to rent in a "lifestyle area" which even as tenant is beyond their means, let alone as a propsective purchaser. It is simply supply and demand, and at the moment yields are returning to a more realistic level.

Not all tenants fit the following mould, but there are plenty who for the sake of instant gratification must have all the consumer goodies NOW and have finance for cars, plasma's, furniture, holidays......., etc.

Reminds me of a story on Today Tonite last year of a poor lady who was crying victim because of negative gearing pricing her out of buying a house in St. Kilda, where she chose to rent and have no off street parking for her late model 3-series BMW.....heaven forbid she stoop so low as to buy in Caulfield, or Carnegie or Bentleigh.

We all make choices. Some choose to live below their means and pay themslves first and invest in property and become landlords. Others choose to pay the vendors of instant gratification first.

 

[steveadl]

"If someone owns a corner deli/snack bar and has to raise their prices to compete with supermarkets, fast food outlets and service stations, it's ok because they are just trying to keep their business going and earn a crust.

I wish! You should hear the way people carry on when there is a price increase of 50c on an item! Even if there hasn't been an increase since they bought it last: "$22.95! I remember when this used to cost $16!"

"Yes, I do too - about 8yrs ago! Tell me any product or service that doesn't go up in price!" - I don't say that out loud though!

Occasionally, if they really annoy me, I come back at them with; "yes, but wages go up every year too." They always seem to conveniently overlook that fact.

 

[silversands]

Hey Steveadl, HeHe. With our discount store, we have had the "nerve" to put up a few of our $2 priced items to $2.25 - Sheesh! You'd think after 8 years thats fair wouldn't you? You may be the only person who is not amazed to hear how many grumble about this! This doesn't even begin to recoup the wholesale price increases in this time. (Now I'll get off the soap box) I hijacked it anyway...

It really is simple. If one insists they cannot afford to buy in their area of choice they can buy in a cheaper suburb. If they cannot afford to rent in the area of their choice they can rent in a cheaper suburb. In much the same way as a LL must buy or build in the suburbs they can afford. i.e I would love to build an i.p. in Northgate, but I can't afford to, Boo Hoo, so will I complain that I can't afford to build at all? No, I will build in a cheaper area. So am I missing the point or am I too simplistic in my logic?

 

[Harris]

My heart bleeds for them more than u Lizzie. You accept the risk of rising interest rates when you purchase property. Suck it up.
No more sob stories from you thankyou......

get your head out of there muzz

it must be getting quite hot in there

Go and learn the basics of supply and demand before giving any of us any advice

 

[alexlee]

The lease on one of my IPs is up for renewal. A search on re.com.au showed ZERO comparable properties in the same suburb for rent, and only a few in surrounding suburbs. Agent said 'why don't we ask for a $10 increase because they're nice tenants'? I told the agent that there were no comparable properties for rent in the suburb, and he said 'ok, we'll try $20, then'.

I was actually a little disappointed in my PM. *I* pay him. So he works for ME. He's supposed to tell me the maximum I can charge.
Alex

 

[alexlee]

My heart bleeds for them more than u Lizzie. You accept the risk of rising interest rates when you purchase property. Suck it up.
No more sob stories from you thankyou......

As Steveadl said, you rent, you take the risk of the rent going up. Any more sob stories from renters and I'm going to have to jack up my rents even MORE just to vent. They don't like it? Vacancies are pretty much zero at the moment.
Alex

 

[steveadl]

You may be the only person who is not amazed to hear how many grumble about this! This doesn't even begin to recoup the wholesale price increases in this time. (Now I'll get off the soap box) I hijacked it anyway...

It really is simple. If one insists they cannot afford to buy in their area of choice they can buy in a cheaper suburb. If they cannot afford to rent in the area of their choice they can rent in a cheaper suburb. In much the same way as a LL must buy or build in the suburbs they can afford. i.e I would love to build an i.p. in Northgate, but I can't afford to, Boo Hoo, so will I complain that I can't afford to build at all? No, I will build in a cheaper area. So am I missing the point or am I too simplistic in my logic?

Exactly, my costs go up every year guaranteed - rent, wholesale prices, wages, utilities etc. I don't think people understand if we didn't put prices up, we would actually make less money than we did in the previous year. Perhaps they just don't care!

On your second point, hell yeah! I'd like to build in Leabrook - ain't gonna happen though! Perhaps I should contact Today Tonight?

I was actually a little disappointed in my PM. *I* pay him. So he works for ME. He's supposed to tell me the maximum I can charge.
Alex

I've unfortunately found the same thing. My PM is brilliant, but I think I could have got at least an extra $5-10pw for one of my IP's last year when they only increased it by $5pw. I let it slide, but won't this year. Another one on periodic - it was up to me to tell them I wanted the rent increased.

I think as good as a PM is, we still need to keep an eye on market rents ourselves. On the bright side, it's pretty easy, and fun to see how much the rents are going up in my areas..... oops, wonder if Muzz heard that?

 

[weg]

Housing is expensive.... Period!

Why should one group the renters not pay the market price .

If you are sick or disabled you qualify for public housing and get charged rental in accordance with what is affordable or you get rent relief in the private market.

If not then you pay like everyone else.

 

[lizzie]

My heart bleeds for them more than u Lizzie. You accept the risk of rising interest rates when you purchase property. Suck it up.
No more sob stories from you thankyou......

i assume that was tongue in cheek.

well i ain't catting and sobbing to the media about it - "oh, woe is me" ... i'm just getting on with the job and doing what needs to be done.

(with the occasional vent on a friendly and likeminded website like ss )

 

[BayView]

Another sent out a letter warning tenants who don't pay on time they would face a rise and not be recommended for other properties.

This should be standard procedure in my opinion.

 

[sailor]

This should be standard procedure in my opinion.

I'll drink to that!