Education Centre

History will repeat itself

Nothing is more distressing then rental price increases.  I understand the emotion involved.  Under Work Choices and increased federal taxes, families are finding it hard to make ends met.  The state government has not used its huge GST revenue on public housing, and this lack of investment has squeezed lower socio-economic tenants into the private market for the last 3-7 years, a place they have not been for over 30 years!

It's hard for families, I accept, but market conditions and government policies are driving rents, not landlords and agents. 

However we must move on from emotion and realise that rental prices go UP and DOWN.  There is no anguish when the market turns on investors and prices go DOWN, so we shouldn't remember this when prices go UP. 

For the last 7 years I have been involved in renting property in Beenleigh and it was common for a $230 property to be leased for say $210, as tenants took advantage of a market in their favour.  The hard-to-rent market only changed in the last couple of years/months. 

I note there was no was outcry when it was hard to rent property for a decent return, why didn't everyone chip in and help my clients pay their mortgage, or is that 'just tough', or as I have commonly heard, 'Property wasn't a wise investment so they shouldn't have bought it in the first place"? 

Tenant tender has been designed to alleviate the economic stress of tenants.  Tenants now take control of their budget.  The process is legal, ethical and honest.  If you don't think it's fair, move to Communist China, I'm sure there's plenty of state housing at caped market rents there for you.   I have heard of no rental squeeze in government controlled economies.  In communist countries food is plentiful and children play in the streets while hugging trees and eating fairy bread. 

In the real world, our tenants love to tender as a way to address rent price increases.  Tenants keep tendering and referring their friends and family to our company.  I note, no other agent in Queensland uses our system, and if it was so horrible, so blasphemous, no tenant would rent from us and would flock to our competitors.  Our vacancy rate is next to 0%, our competitors languish at 4%.  The figures talk for themselves!

The end of the barrel is this; if rental prices are not allowed to increase in line with the costs associated with providing housing there will be a worse housing crisis then there already is.  Returns are not even close to yet covering the costs associate with providing a rental property. 

Market economies must be allowed to run their full extent, including rental prices. Capping rents or artificially deflating prices is foolish, as investors will run from the market, creating housing scarcity.   

If you reject tenant tendering you believe in controled markets, this is the core of Communist ideology.  Communism lead to shortages and the reduction in living standards.  Communism was rejected world-wide, and we should also reject the Communist-based criticism of tenant tendering. 

A safety net has always been provided by the government for those that can't afford housing.  The safety net can't be provided by the private market, and if you expect it to watch as prices soar to dizzy heights.

 Contact your local member about the housing crisis and ask why there isn't enough public housing being built.