The media is doing their best to push the narrative that it’s the greedy landlord to blame for the housing crisis when in fact I think they are the only saviour. Sure there are a few slum lords out there capitalising on renting out overpriced dives and focusing on huge returns. But the majority of Geelong Real Estate Co landlords are everyday mum and dad investors who chose to take a risk to try and get ahead in life and plan for their retirement. They’ve taken a 2nd mortgage on their own family home to buy an investment property and are now living pay check to pay check.
There seems to be this massive misrepresentation that landlords own these investment properties outright and that the tenant’s weekly rent is just additional play money for the rich, and it’s just not the case.
For example
Say you bought an investment property for $600,000 2 years ago on a 2% interest rate your weekly payments were $512 now with the rates at 7% it now costs $922 per week. The weekly rent for that same house was $500pw now it’s $550pw. Throw in $2250 land tax $2000 rates, $2000 for miscellaneous expenses and that property is now costing over $25K just to hold the property and in this current market, the asset is declining in value or at best going sideways.
If you’re not sympathetic, consider the alternative. As ex-rental listings being put for sale have soared by a staggering 30% compared to this time last year, the rental crisis is about to get 10x worse.
What’s the solution? It’s not sledging landlords. Out of interest can anyone name an affordable housing solution that the government is providing?
Unpopular opinion, landlords aren’t the enemy
