Labor looks to impose rent ceiling

[Savanna100]

I get to work this monring and this greets me in my morning media monitor email....unbelievable !!! (this is an excerpt)

Labor dons dunce cap in draft rent platform, Australian Financial Review, 01/12/2011,
Robert Herley

The Labor Party is poised to make rent control part of its national platform. I know, it's hard to believe. So let me quote from the draft platform that will go to Labor's national conference this weekend "Labor will monitor the rent costs in the private rental market and examine mechanisms to maintain affordability such as the introduction of rent capping legislation." Just what Labor means by rent capping is not dear. But in a country where private landlords, over 1 million voters all up, provide the vast majority of rental housing, it sounds like economic and political stupidity. The Minister for Population and Communities, Tony Burke, says the Gillard government understands that rental costs are real pressure for many families. But his government seems devoid of new ideas or interest. Cabinet took nine months to re appoint the National Housing Supply Council; it only extended the NRAS at the insistence of the Greens.

 

[Aaron_C]

hahaha that made my morning! Thanks for sharing that episode of Sesame Street

 

[lizzie]

So typical Labor ... instead of looking at ways and incentives to increase supply side they plan to penalise those who are already supplying to an over-demanded market.

Talk about the lazy way out ... and considering most of those investors are mum and dad's who are trying to create a nest egg for retirement so they aren't reliant on the pension - the plan to penalise is even bigger bullpoop.

 

[hobo-jo]

Most Australian cities don't have a supply problem, Sydney might be the current exception.

More government intervention in the housing market doesn't seem like the right solution.

Rather they should remove the FHOG, remove any stamp duty concessions or grants. Let prices fall. Recession will follow along with rents falling in nominal or real terms. Problem solved.

What they are proposing is like slashing a bike tyre at the same time they are trying to pump it up. Ridiculous.

 

[tom32]

So this will be the deal they made with the greens to get the MRRT through parliament...

That means the only people who will be eligible for rent caps will be lower paid.

We will end up with a private rental market a public housing market and now a shadow government subsidised market.

I agree with lizzie, better they look at the whole market and focus on the supply side not a segment of it. It is the supply side they have cactused with its slow motion response to price pressures.

 

[Aaron Sice]

i said rent control was coming - again, got pretty much ignored.

i thought it might have been hidden behind the NRAS scheme - but nope, this is true overt socialism at work.

when the govt interferes in private markets - they get more expensive.

all this will do is lower rents and people wont buy for investment, which means an eventual housing shortage.

a housing shortage equals higer prices and higher rents, affecting affordability.

Labor.....*smacks forehead*

 

[evand]

Unless they are bailing out world financial markets after a complete collapse of a debt ridden private system. (GFC)

when the govt interferes in private markets - they get more expensive.

 

[kathryn d]

I remember reading about NY awhile back. They used to ..and maybe still do..have rent controls in certain areas. They may not be able to charge more rent, but they would insist the new tenant paid about 2K for the curtains to be left.

I'm sure it won't be too bad, even if rent control does get in.
What's the worse can happen? People stop providing rentals, house sold off, glut of houses on the market,house prices decline. People start buying PPOR.

Tenants, with their rent is optional mentality, figure mortgage payments can be late too. They get foreclosed on, and want to rent..and very little to pick from.

Now if they have rent control and abolish NG..wow, a bunch of unhappy LLs.

 

[Aaron Sice]

Unless they are bailing out world financial markets after a complete collapse of a debt ridden private system. (GFC)

kick.
can.
road.

....NOT a solution.....

 

[mattnz]

I imagine that this has happened in response to places like dysart and moranbah where rents have skyrocketed.

If this actually starts to get some legs, you can imagine how much rents will skyrocket before it is introduced, so landlords can future-proof themselves.

 

[mattnz]

That means the only people who will be eligible for rent caps will be lower paid.

If this was the case, they would very quickly start to be discriminated against, with those on a low wage never getting into any rental accommodation.

 

[Belbo]

Rent caps come in.

Rational investors refuse to re-enter the market or remain in the market, and invest elsewhere.

Rental property numbers fall.

Vacancies flatline.

Government can't create housing alternatives.

Rent caps are removed.

Explained away on Microbusiness as a seasonal and regional anomaly.

Rents return to market price.

(Rent caps re-recommended on Microbusiness).

 

[Francesco]

Rent caps come in
Investors adjust to new policy
Customise lower status housing and under maintain IP for the lower wage group
Lower wage group live badly in poorer housing and discriminated against by other LLs to avoid the hassle of tangling with PC
Lower wage group cry for more and better public housing and rental assistance
Government faced budget balancing priorities
Rent caps removed
Maybe incentives to PIs to cater to the lower wage group of tenants
Social experiment passed and controversy over lesson learnt
Another economic cycle passed

Younger group of social engineers graduated
Digs out rent cap policy
Start of social engineering cycle on rent caps

Just like NG

 

[Deltaberry]

Rent caps come in.

Masses celebrate.

People realise that 90% of voters are bogans.

Rich people gtfo.

 

[lizzie]

According to ACA there are masses struggling to find accomodation and will be homeless for Christmas.

I don't know how many - but the examples they held up on the program as desparate for a house ... sorry ... but if I had the choice between a young professional couple or a family with 3 kids on the pension with scraggly haired, toothless dad and saggy, overweight mum wearing a boobtube thing ... they "seemed" nice people ... but ...

I know it's discrimation and "judging a book" - but sorry - that's how the world is and it is my valuable asset that I am entrusting to others to look after.

What annoys me about the government voicing this is that lack of housing is purely a supply and demand thing. I remember (was it?) 10-15 years ago when a flood of units came on the market in Sydney. Rents plummeted, free weeks were offered to renters, free cars were offered to buyers. Didn't hear the landlords whinge and expect the government to fix it ... oh ... okay ... some did but were told "tough titties and rack off".

 

[Dazz]

"Labor will monitor the rent costs in the private rental market and examine mechanisms to maintain affordability such as the introduction of rent capping legislation."

Hopefully they mean just the housing and flats and units rental market.

 

[Ideo]

Look at what your precious liberal party is doing in NSW to make the simple task of building a house in NSW more difficult. It just listens to whingeing councils and thats it.

Purely populist. Not looking after investors, business or the community.

At least the labour government, for all its faults, actually encouraged development to happen.

 

[Deltaberry]

Populist? Blame democracy

 

[lizzie]

At least the labour government, for all its faults, actually encouraged development to happen.

only after you handed over the brown paper bag of money - or the prostitutes - or both ...

yes - the current state Liberal government promised so much but is delivering so little ... a real disappointment. I believe their hands are relatively tied by having to compromise with Fred Nile and the Shooters Party.

 

[Ideo]

only after you handed over the brown paper bag of money - or the prostitutes - or both ...

yes - the current state Liberal government promised so much but is delivering so little ... a real disappointment. I believe their hands are relatively tied by having to compromise with Fred Nile and the Shooters Party.

Yeah - not saying they were good, and they needed to go for a change if nothing else but I am just so very disapointed in the current government.

At the moment all we have is knee jerk reactions to whatever community interest group or council complains the most.