Rent freeze period
- Thread starter markp
- Start date
Right. Do that, and watch IP supply plummet. What do you reckon will happen? Agents (and owners) will just charge higher 'fees' to sign a lease. Or keep turfing people out every 6 months so that they can change tenants and charge more rent. In Japan you have to give a month or two of 'gift money' to the landlord. That's not a deposit: you don't get it back.
Price controls simply don't work unless the government also controls the actual supply. Since IPs are in the hands of private landlords, it won't work.
Alex
Price controls simply don't work unless the government also controls the actual supply. Since IPs are in the hands of private landlords, it won't work.
Alex
great to see that they've put a freeze on pollies wages for the next 12 months!! they get overpaid as it is (imo).
it better not flow onto the private sector tho. i clearly recall when in nz muldoon put a wage freeze on. it was major struggle street for most, and then the instant the freeze was taken off wages skyrocketed thru the roof to what they would've been if the freeze had never been put on in the first place.
solved nothing but pushed the issue into the future.
it better not flow onto the private sector tho. i clearly recall when in nz muldoon put a wage freeze on. it was major struggle street for most, and then the instant the freeze was taken off wages skyrocketed thru the roof to what they would've been if the freeze had never been put on in the first place.
solved nothing but pushed the issue into the future.
This was covered by Rudd, apparently not so.
Sure - before you know it Rudd will freeze prices for petrol, groceries and housing. Then we'll all get handed a Mao suit and a bugged fridge magnet and that serves all us people right who voted for him 
... Boy, did I miss a revolution here somewhere? Last time I looked we were still a market economy.
kaf
... Boy, did I miss a revolution here somewhere? Last time I looked we were still a market economy.kaf
How will IP supply plummet in 12 months ? Is everyone going to sell their house in the next week or month in protest ? And the only purchasers of all these extra houses on the market would be people looking for PPOR's ? I won’t sell, my rent has just gone up, and I was not going to put it up again within 12 months anyway
- have I read it wrong, or am I not affected ?
Exceedingly controversial, yes
Will it work ? Probably not, but then again the proposal if for 12 months, not indefinitely, a lot of pple will have tenants on a lease anyways, so they are exempt from being affected, others may turf out tenants after 6 months, but that can happen now anyway (if my tenant didn’t agree to the increase, he'd have left). If interest rates & economic pressures subside, (the sort of aim of this halting inflation stuff), market prices may reflect this also in the form of not so quickly escalating rent prices..
Yes politicians last wage increases were large, because every increase was large, last year was not different
I don’t agree with it.
But let's not get carried away with the explanations used against it…..
- have I read it wrong, or am I not affected ?
Exceedingly controversial, yes
Will it work ? Probably not, but then again the proposal if for 12 months, not indefinitely, a lot of pple will have tenants on a lease anyways, so they are exempt from being affected, others may turf out tenants after 6 months, but that can happen now anyway (if my tenant didn’t agree to the increase, he'd have left). If interest rates & economic pressures subside, (the sort of aim of this halting inflation stuff), market prices may reflect this also in the form of not so quickly escalating rent prices..
Yes politicians last wage increases were large, because every increase was large, last year was not different
I don’t agree with it.
But let's not get carried away with the explanations used against it…..
As I've said before, the property market isn't static. Demand keeps increasing, to to even keep pace you need a certain number of NEW properties to be built. If you freeze rents, the demand for IPs would plummet. That means fewer properties will be built. Demand is still increasing, though, from immigration, people leaving home to start their own families, etc. Property demand and supply change.
Alex
I just can't see how you could legally freeze rents? Pass a law that only allows 12 months leases without rent increases? How would that be different to passing a law that petrol prices are only allowed to be changed once a week (now that would be good!) or that wages can only be increased once every 12 months? And what if the tenant moves out after 6 months...
kaf
kaf
B.s.
That is a truly ridiculous claim if there is not a whiff of evidence that this is even being conisdered.
That is a truly ridiculous claim if there is not a whiff of evidence that this is even being conisdered.
Happens in Canada ( in Ontario. )The government sets the maximum % the landlord is permitted to raise. I think at the moment it is 1.4% per year.
The only way for them to increase the rent is with a new tenant.They also have a very hard time getting rid of tenants. They are not permitted to ask for a Damage Deposit. If the tenant leaves the place dirty and damaged, they need to then try to find the tenant and collect.
The only way for them to increase the rent is with a new tenant.They also have a very hard time getting rid of tenants. They are not permitted to ask for a Damage Deposit. If the tenant leaves the place dirty and damaged, they need to then try to find the tenant and collect.
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