Tag: rental crisis

‘Zombie’ homes are fueling Australia’s rental crisis, experts say

Post author By mangakiko
Post date August 9, 2022
No Comments on ‘Zombie’ homes are fueling Australia’s rental crisis, experts say

Real estate experts say Australia is experiencing a rental crisis that’s set to worsen without government intervention, and so-called “zombie” homes are fueling the problem.

A zombie home is a property that is occupied only part of the time – such as a holiday house listed on Airbnb – that is not available to rent on a short or long term lease but can generate large profits for the owner.

For example, a good property in a regional town, near the beach or one in inner Sydney could fetch $1000 for a weekend but just $800 on a weekly basis under a leasing arrangement, First National Real Estate CEO Ray Ellis said.

“It’s a lot easier to take your investment property out of the full-time rental mix and put it into the short-term rental mix which is basically AirBnB or weekend accommodation,” Mr Ellis told news.com.au.

“If you could get $800 a week by having someone there full-time but you can get $1000 for a Saturday and Sunday, and don’t have to go through all the extra legislation requirements, you’ll do it, because you’re making the same return,” he said.

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Throughout any city there’s “hundreds if not thousands” of zombie homes, especially in coastal areas, that are occupied one or two days a week, Mr Ellis said.

“There’s now too many occurring in most cities in Australia.”

The benefit for owners – apart from the financial element – was not having the long-term commitment of dealing with renters, he added.

Zombie homes are widespread, with last year’s census revealing that during lockdown and while Australia’s borders were closed, there were more than 1 million unoccupied properties.

While it’s a win-win for landlords, renters are suffering with rents souring and long queues of desperate prospective tenants lining up to inspect properties. This has forced some to live in their cars, a motel or caravan – even couch surfing – to keep a roof over their heads.

“Investors are putting their properties out for Airbnb, but it’s taking rental properties away from renters and that lack of … properties available to rent is driving demand and prices up,” Finder money expert Rebecca Pike told 7NEWS.com.au.

PropTrack’s latest rental report for the June quarter found the number of renters per property listed on realestate.com.au had risen 28 per cent year-on-year across capital cities, with Sydney and Melbourne experiencing the greatest increase.

The number of rental listings in Sydney fell 21 per cent in the last year. The largest declines in listings were recorded in Melbourne (-25.7 per cent) and Brisbane (-24 per cent).

Overall, the number of new listings coming on to the market was 13.8 per cent lower than the decade average in June.

The strong demand for rentals and limited supply was leading to significant increases in advertised rent prices, the report found.

Rental prices in Sydney have grown by 6 per cent over the past year, after having fallen throughout the early part of the pandemic.

The median rental price for a house in Sydney is currently $620 a week and $500 for a unit.

Nationally, the median weekly rent for a house is $490 and $440 for units.

With higher land tax charges for investors and larger interest rates, many of these costs are being passed on to renters causing rents to rise even further, the report added.

Ms Pike told 7NEWS.com.au the rental crisis needed urgent action and would get worse over the coming months.

“We’re definitely seeing that demand for rental housing going up because we have so many more people coming into the country, whereas during Covid we really saw that drop,” she said. “There is definitely more demand at the moment, but there’s also less supply.

“Also with the RBA cash rate, if investors are paying more for their loans, they’re potentially passing that on to renters.”

Business

Australia rent prices: Real cause of property market crisis revealed

Post author By mangakiko
Post date August 9, 2022
No Comments on Australia rent prices: Real cause of property market crisis revealed

The cause of Australia’s worsening rental crisis runs far deeper than the economic pressures behind rising interest rates and soaring inflation, a prominent real estate expert has revealed.

Ray Ellis says the crisis will deepen without swift action from state governments on social housing and new build “red tape”.

Mr Ellis, former director of the Real Estate Institute of Australia and First National Real Estate chief executive, warned Australia has nowhere near enough homes to cater for its population, let alone accommodate migration increasing in the wake of the Covid pandemic.

He said state governments must urgently take responsibility for the immediate need for more social housing to remove pressure on the private sector.

“Between 1955 and 1964, state governments built about 140,000 social houses. We’ve never built that amount again,” Mr Ellis told news.com.au.

“There have been government incentives for landlords to become property owners and rent properties, and that has been the mainstay of any government policy.

“Social housing has become the responsibility of the private sector.”

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Significant lags on new developments largely hindered by “bureaucracy” also meant it was taking several years before construction could even begin.

“In the last 25 years, the provision of new land to build more houses by more private developers has been very slow and very cumbersome,” Mr Ellis said.

“It will take two years to go from the concept to the start of construction.

“Its just bogged down in bureaucracy by non-action or slowness in action.”

Slow-moving developments and underfunded and underresourced social housing were major contributors to the crisis, alongside a shift in attitude among landlords, Mr Ellis said.

He had observed landlords becoming frustrated at new regulations weighted towards tenants and immense pressure to provide rent so low that it would barely cover their costs.

“A landlord wants nothing more than a good tenant, so they will provide rent and services at a reasonable rate and comply with government legislation, but it’s not their responsibility to reduce their rent below what their source of income is,” he said.

Many landlords had become entirely turned off maintaining rental properties and as a result were offloading them, often to investors keen to make the most profit possible by using them as “zombie homes” such as Airbnbs.

“This is a genuine crisis. It doesn’t matter where you are in Australia, there is no rental stock available,” Mr Ellis said, adding that as “migration picks up again, it’s going to get even worse”.

“Australia is just not building enough houses for us to live in, let alone to be rented.”

Impact of ‘zombie homes’ on rental market

Throughout any city there are “hundreds if not thousands” of zombie homes, especially in coastal areas, that are occupied one or two days a week, Mr Ellis said.

“There’s now too many occurring in most cities in Australia.”

The benefit for owners – aside from the financial element – is not having the long-term commitment of dealing with renters, he added.

Zombie homes are widespread, with last year’s census revealing that during lockdown and while Australia’s borders were closed, there were more than one million unoccupied properties.

While it’s a win-win for landlords, renters are suffering from soaring costs, and have to put up with long queues of desperate prospective tenants lining up to inspect properties. This has forced some to live in their cars, a motel or caravan – even couch surfing – to keep a roof over their heads.

The number of rental listings in Sydney fell 21 per cent in the last year. The largest declines in listings were recorded in Melbourne (-25.7 per cent) and Brisbane (-24 per cent).

Overall, the number of new listings coming on to the market was 13.8 per cent lower than the decade average in June.

Business

Queensland mum Alexi Bennett, partner and kids forced to live in motel room amid rental crisis

Post author By mangakiko
Post date August 5, 2022
No Comments on Queensland mum Alexi Bennett, partner and kids forced to live in motel room amid rental crisis

A young family has been forced to live in a Gold Coast motel amid an ongoing housing and rental crisis crippling Queensland.

But even with a virtually spotless rental history, stable income and no prior issues with their previous properties, Alexi Bennett and her partner Tinei Tiumalu say they still can’t find a place to live two months after their troubles began.

The couple, who has three young children, had to leave their previous rental home in May after their lease was not renewed.

“We were effectively made homeless,” Ms Bennett told NCA NewsWire.

Ms Bennett first spoke to the Gold Coast Bulletin about her plight and how it left them with no place to go.

She said they were now living in a small motel room which cost $850 a week while she continued applying for new properties from the Tweed region up to Logan.

“We’ve been going through real estates, private rentals, Gumtree, even the apps that aren’t really well known and there’s still nothing,” Ms Bennett said.

“It’s just rejection after rejection, or we’ve been told it’s already just been leased.”

“It’s a daily thing now.”

Ms Bennett’s plight is just one of many stories amid a shocking housing emergency leaving thousands of Queenslanders struggling to find a home.

Last month, the Queensland Council of Social Service (QCOSS) revealed more than 50,000 Queenslanders were waiting for a home on the social housing register.

The QCOSS blamed unaffordable house prices, rising costs of living and a slew of natural disasters plaguing the state.

Ms Bennett, a qualified aged care nurse, with her removalist partner Mr Tuimalu, are financially able to afford a rental property but have been constantly rejected from applications.

“It hits you; it really brings you down,” she said.

“My anxiety is through the roof. I sit up at night looking at homes, it leaves you speechless.”

Ms Bennett said she was remaining as positive as possible in the face of the constant rejections.

But she admitted she doesn’t know what the future holds.

“I don’t want my kids to know this life or the amount of guilt around simple things,” Ms Bennett said.

“We can’t even have fish and chips on the beach or go to the Ekka because of the money we have to pay in rent.”

According to research group SQM Research, renting a house on the Gold Coast costs about $970 as of August 4.

The average cost of a unit is around $653 a week.

Earlier this month, housing campaign group Everybody’s Home released data showing the “red zones” where rent prices had surged ahead of wage increases.

Northern parts of the Gold Coast had an average increase of 15.1 per cent to $835.50 for a rental.

The Brisbane CBD had a 3.6 per cent rise to $556.60.

Read related topics:Brisbane

Business

Rental crisis: employer’s shock at real estate agent’s questions

Post author By mangakiko
Post date August 4, 2022
No Comments on Rental crisis: employer’s shock at real estate agent’s questions

Support has piled on for an employer who called out real estate agents who asked “invasive” questions about one of his employees, prompting other Aussies to share their own horror stories and distrust for the industry.

Taking to Twitter, Victorian Trades Hall Council secretary Luke Hilakari shared his dismay at being asked questions about his employee that he said had no relevance to applying for a rental property.

“I was a reference for an employee & the agent asked q’s like: Total salary, do they come to work on time, are they hard working,” he shared.

“These q’s are none of the agents business & no boss should have the power to spike where u live.”

Now, others on Twitter are sharing their own experiences, and backing up Mr Hilakari’s stance.

“Have you had many girlfriends? Would you trust him with your kids? Does he like to go out late?” answer one. “True questions recently asked to my reference when applying for a rental. Get in the bin.”

“I’ve done one of these too, but even worse,” replied another employer. “It’s stupid. Even if the employee is seconds away from being fired, there is no incentive and a lot of risk for a manager to write anything remotely meaningful. I cannot discuss an employee’s performance with a real estate agent.”

Another was quick to speculate it was likely the real estate agent had taken it upon themselves to ask the questions, and questioned if landlords even knew this was happening: “This is total power tripping and I bet the landlord has no idea it’s even happening and isn’t given that info.”

“That’s 100% correct. Real estate agents think that they are a law unto themselves. They are the root of the housing crisis, as well as developers riding roughshod over homebuyers and governments,” agreed another.

Although most were firmly against the apparently not uncommon line of questioning, not everyone supported renters, with one Twitter user replying that these were fair questions to ask.

“Of course they’re relevant questions. If they don’t make enough money then they may not be able to afford the rent. If they don’t come to work on time then they might not pay their rent on time. If they are not hard working then they may not look after the rental property,” they said.

“Sorry to burst the bubble but these kind of things add up to someone who is probably responsible and would probably reliably pay their rent on time,” said another.

While some argued that seeking to find out what type of person an agent might be allowing to rent a property is fair, others pointed out that those looking to buy weren’t held to the same standard.

“I recently got a mortgage and they didn’t call my employer,” a Twitter user commented. “Pay slips/bank statements were enough. Renters are being scrutinized to a greater degree for a much shorter term/less beneficial to them financial commitment.”

We all know that the process of applying for an overpriced rental is competitive, invasive and absolutely stacked in the landlord’s favor — just look at the reaction one potential tenant got when he asked for something as simple as a reference for the landlord.

Now, Mr Hilakari says changes to the Victoria’s Residential Tenancies Act are needed to regulate the types of questions real estates can ask.

Speaking to news.com.au, Mr Hilakari further explained that he was concerned with invasive questions like this were not only getting worse, but unfairly gave an employer too much power of their employees’ life.

“We’ve received reference checks for rentals before for and the questions being asked are getting much more invasive,” he said.

“As the rental market has tightened, it seems real estate agents think they have the unfettered right to ask whatever they want.

“Employers are put in the terrible situation of either having to give personal information or risk their employee missing out on a house to live in.

“I’ve had both employers and renters reach out and say they have universally had a gut full. Renters feel completely put over a barrel and feel they have no choice but to share their personal data.

“The system has to change.”

Tags agent business, employer calls, employer way, Hall Council Secretary, invasive questions, kids River, questions real estate, real estate, real estate agents, reference check, rental crisis, rental-property, Trades Hall Council, Victorian Trades Hall, Victorian Trades Hall Council

Australia

Rental crisis: employer’s shock at real estate agent’s questions

Post author By mangakiko
Post date August 4, 2022
No Comments on Rental crisis: employer’s shock at real estate agent’s questions