The grim reality being that the landlord's understanding is actually correct. They can charge whatever they like and there will be someone willing to pay it.
True and the law does not provide any detail on what is a reasonable increase. So if the landlord describes the increase calculation they use and the increase is lower than that it gets hard for the tenant. Of course you could sign a longer term lease and lock the landlord into specified increases if they agree.
@@vk3fbab tbh, everyone is getting screwed over but the builders. Just look at the recent news where apartment owners have to pay tens of thousands a quarter to fix up their dodgy builds, while the original developer went bust.
That's why the CFMEU is too powerful. I like the idea of unions and support the existence of unions to counter bad employers. But when the unions get too strong you get rort and BS going the other way as well. You need balance
I live in Sydney, about 3-4ks from Central and Town Hall railway stations and can tell you that there are a million shitpot apartments in between those places where you get 4 to 6 international students cramming into these abysmal abodes. Back in 2016, I went with a pal of mine who is a plumber and he took me to 4 jobs in that space and the units were disgraceful.
Medium density living sucks with the current Australian building standards and dodgy developers/builders barely scraping the minimum on standards to maximise profit. It's a choice between fire cladded apartments or unwittingly listen to my neighbour take a dump in the new apartment block next door because the walls and windows are so thin.
Agreed that the building standards need to change in a big way. Our cities and commutes will continue to balloon and Americanise until we can make decent quality apartments people are happy to live in.
If the "builders barely scraping the minimum on standards" that would still be OK because it would mean they were actually meeting the minimum standards. The problem is that they're not. They're cutting corners, not meeting minimum standards, and because of deregulation they just get their mates to sign off on the inspections. ANY time you see someone talk about "cutting red tape", it means deregulation and the removal of laws that are usually designed to protect consumers from exactly the kind of thing that has been happening in the Australian building industry for the last 2 decades. Anyone who disagrees can look up the Mascot Towers in Sydney and then come back and try to defend those developers... if they can.
@@IturaldeRodel Curiously enough it was the CFMEU that made noise about dodgy combustable cladding, Asbestos riddled plasterboard dodgy lifts that you can't get spare parts for.and floor tiles all brought in on the cheap from China. What did they get,oh yeah shut down by the courts then set upon by news ltd hacks who now have Labor attacking them. We have a federal election coming up. maybe a house full of independents may get things going as those that should have, stopped listening to those they should be listening too.
As a landlord renting out a CBD apartment, mine looks frigging awesome compared to this. Great views and working lifts. The thing to factor into costs is OC fees. In the building i own this is over 7000 if the manager Can get the budget right. Lifts, pools, gyms, cleaners, concierge, insurance and saunas cost money. Also factor in capital growth of Melbourne CBD apartments is probably negative so you have to be getting cash flow positive. This means no negative gearing. Just a landlord's perspective.
However things that suck are that I have to pay for these bullshit electrical and gas inspections. I say they are bullshit because there introduction was not based upon evidence. Just seems like a good idea. I'm on the hook to fix a whole bunch of things within two days of being notified. Which can be really hard sometimes with trades hard to come by and parts etc. luckily I haven't needed to do that yet.
@@Liam-k8k problem is actually the building inspection and quality. I'm going to guess that any of the newer apartments won't last 20 years (even if that). Just watch some videos from Site Inspections
A couple of things, firstly, banks will not lend if an apartment doesn't reach a minimums sqm (50sqm from memory), secondly, some banks will not give you a 'full' LVR for a city apartment say 60-70% (for example most home loans are maximum LVR of 80% without LMI), thirdly, some apartment buildings are 'do not lend'. Having said all that, buying those apartments still may include a HUGE catch (people don't seem to pay attention to these 'little things'). Under $300K may seem like a relative bargain except it doesn't take into account the $60K the owner (you, if you buy it) has to contribute to (say) cladding or current issues such as lift repair, and an exorbitant annual body corporate fee incorporating a sinking fund (but more often or not, overpriced body corporate fees to a related entity). I saw one apartment I liked in a redeveloped older building, it was fantastic and rock solid with minimal issues, body corporate fee was $10K per year because they decided to render the brick when they redeveloped it and it needs to be repaired every few years. $10K + any other new major works fee they have to collect + all your other fees + mortgage. It's no wonder a catastrophic economic depression is coming. ALWAYS ALWAYS ALWAYS check the s 32 declaration (in Victoria) and read all the body corporate reports and notes.
Maybe ramping immigration to 560K net a year for the lasty 2 years wasn't such a good idea. It's weird you think peopl ehaving space is bad, but never question WHY our housing market is so sheet. Imagine if 800,000 less people were int eh country than we currently have. Would we be experiencing the current housing and rental affordability crisis?
I reckon a big reason why living in Melbourne CBD is so high is because of international demand. Back when Covid started international students weren’t allowed to migrate in so demand wasn’t high. As a result I got a fantastic apartment for $350/week. Soon as Covid restrictions went out and international students were allowed in, rent skyrocketed. My rent went up gradually to $750/week Demand makes the prices go up. A lot of international students I know come from very wealthy families so they’re ok with paying an exorbitant amount. If you put two and two together you come with the working class who get paid just enough to get by vs wealthy students with a trust fund to their name. Obviously locals will have a harder time to find a place
During lockdown the owners were offering massive discounts as all the students returned home and they had no way of paying their investment properties. I has a 4 bedroom house in Epping that was $400pw the owner was about to lock us in for $300 for 1 year. After lockdown he said he was selling the house which we later found out was bullshit as we saw it for rent for $650 pw Drove pass the other day seemed like there were 2 Indian families living there
@@Liam-k8k Yep Chinese and Indian make up over 50% of new house purchases in Australia whilst Aussies make up 22%yet its illegal for an Aussie to own a milk bar in China
Sammzz- you are 100% correct. Same thing happened to me but with a slight difference - mine did not go up gradually (more later). I live near a uni so during the border closure I secured this apartment at $290 a week, as soon as the borders opened and students came back, lease expired except my landlord got greedy - he raised it by $200 PER WEEK all at once. It wasn’t a good time in my life to move so I renewed but for six months. And bam, last month they’ve put the rent up again, this time by $100 PER WEEK. Needless to say I’m in severe financial distress. I’m looking as we speak at other places to move much farther out.
The sale price vs rental on Apartment #3 really shows that landlords are gouging the prices on rentals. Generally, or at least up until recently, the rental price was roughly the same proportion of the purchase price. Example, if the Apartment cost $335,000 to buy, the rent price per week was around $335pw. Because of the prices (rental and purchase) in Melbourne over the last decade, it has pushed up prices in the outer suburbs and even the country commuter-belt areas. I suspect prices may drop (at least a bit) soon, it has very much been a bubble over the last 5 years. There are beginning signs of this in parts of the US that it is starting to happen (at least properties not getting sold). Some of those CBD apartments should have been condemned. I guess they are preying upon foreign students to rent those horrid places.
Thats 5% return BEFORE land tax, council rates, inspections and dealing with the headaches of tenants. You can get 5% from a term doposit. Why bother being a landlord?
I live in Adelaide and I'm incredibly lucky. I have a three bedroom, two bathroom house all to myself and only pay $460 a week. Watching this only makes me feel more grateful for what I have.
you're paying to live in a retirement village that closes up at 4:30 even though the sign says 5:00. I hated living in Adelaide, nothing to do, no jobs, no growth, no new land being developed, no projects, basically there was only that little german town to visit and glenelg beach which was always packed with tourists. That state is going to die in the next 5 decades, too many old people and not enough youth to grow it and the youth that does live there is all stifled and suppressed. The amount of dumpster diving I saw while on the train into the city every week was astounding, shows you just how close to poverty people are in that area. That was 7 years ago.
Its changing a bit which is insane. If Adelaide isn't holding against the housing situation and given the comments here no one actually wants to live in Adelaide then that's concerning. Adelaide still has a university that attracts students and migration programs that bring in workers. Assuming the housing inflation has anything to do with either of these two things.
You're spot on. I'm originally from the UK. I lived in dreadful places while a student back in the mid 90s.You're also right about the number of Aussie's working there back then. The pound was so strong. I worked with many Aussies back then (in hospitality) who thought the pay was great. Now it's completely reversed, and I'm sure the accomodation is not much better. I think you did pick some unfortunate properties to look at. Those ones with no natural light.. for $500 a week, terrible! And that one on the 12 floor with no lift - what the heck? There are far better managed buildings in Southbank which do offer fairly good value for money, especially compared with London or New York. I rented in Southbank for 4 years. It was a great place with fantastic views and was very well managed. You just got to be picky and don't accept the types of apartments that you showcased... especially at those prices.
Sharehousing here is around $400p/wk too if you're anywhere near the city. I was looking for a place only a couple of months ago and the amount of shared places that are $500-$700 per week was insane. I'm currently in a place in Southbank that is "crazy cheap" at $380 per week (cheap because bills are included) but it's a 2 bedroom apartment with 4 people - 2 longer term tenants in the bedrooms (myself included, the bedrooms are thankfully not shared) and 2 people in the living room with a space divider separating them. It means the balcony is also off limits because it's technically attached to someone's "room" and the property manager can't understand why the single bathroom has a mold problem in a small apartment where the shared spaces have zero windows or useable doors for ventilation. The living room "rooms" are essentially AirBnBs so people generally only stay for one to three weeks but are always full - the owners will be racking the $$$ in with this set-up. But hey, compared to the alternatives it's "cheap"
The problem is the housing crisis and shortage of properties at every inspection there’s at least 50 100 people applying for every property makes it impossible to get anything now
The Haywood lane apartment, you forgot to include the crazy body corporate fees in your calculation. Also land tax. That's probably why it's for sale because the owner can't get much of a return, even with crazy rent
Boomers are off their rocker if they think they had it harder than today,i am 60 and i cannot believe what we are asking of our current and future generations,To buy here in Sydney would work out to be 20yrs of all my annual income.
I lived in two apartments in Docklands and one in Southbank between 2019 and 2022. Things were not this bad back then. Hell my Southbank apartment was 2 bedroom and two bathroom and costed me only 480 a week (that’s cause of covid time). Now I bought a house for myself so thankfully out of this rental crisis
problem is lenders are very reluctant to give loans to apartments apartments leverage is low, and there is virtually no capital gain naturally, apartments in Melbourne demand a higher yield
This and despite commbank more willing to loan for properties under 50sqm (or was it 40sqm where most banks go and say no) I doubt even commbank would give out a loan for a studio apartment.
Move to Toowoomba then. If your boss wanted you to work 10 hours per week extra without pay would you? No, of course not. Why should your landlord be expected to accept the same ridiculous proposal? If you don't want to rent then buy a property. Only problem is that it is much harder than renting.
@@SkippyTheRedKangaroo exactly...my mortgage is $1500 a week not a month i live in Sydney. If i can't pay it i'm out that's how economy works all these people bitching about how life is hard well...yeh it fucking is!
i'm looking at a campervan that i'm gonna live in next week. the mjor parties know that 2/3rds of Australians own or have a mortgage so they have no incentive to make houses more affordable despite what they might say. their policies show they're the enemy of renters and will continue to be
Rule of thumb for rental has always been pretty much property value divide by 1000 is the weekly rent. So a $500,000 house can expect to get for $500 per week in rent. This is basically the property generating 5% returns each year in rental income (think of it as dividends if you want), add on the property appreciating value each year (share price) historical average you will mostly get 10% returns or more. Meaning in most areas real estate investments has been outperforming the stock market over the past few decades. In last few years in particular the house prices surged so much that more and more investors have been happy to buy without even seeing the property and leave the house vacant forgoing rent in favour of speculative investment and selling for profit once prices reach high enough, similar to day traders.
Haven't been to Britan for 11 years - 2012. But in the previous decade I went there on 8 seperate occasions (had been there twice prior in 1984, and 1996). I always stayed in hotels/motels, but spoke to 6 people who said they'd lived in Australia and confirmed what you've said But at this very moment I can state categorically from contacts there and, also, UA-camrs that, 50% of the people there are in Third World type scenarios. And another 20% are in shoulder-deed struggle-street social and finacial positions. As for Vancouver (and throw Tortonto in as well) everything you say is totally correct. But what you negelected to say about Britain, and, more so, with Canada is how large-scale immigration, as it is here, too, in our big cities, is a big crux of the affordibility and availability problems. Where I live in the inner-city precinct of Alexandria/west Waterloo/Redfern, the bane of the problem is with international students usurping tennants. However, the government claims it is going to stamp out tennants getting the flick. Anyway, I'll believe that when I see it.
The calculation showing the landlord is $160 weekly cash in pocket after mortgage repayments deducted from rent, is not accurate. It doesn't consider owners corporation contributions (can be significant if including sinking fund and special levies), land tax, council rates, property management fees, annual gas/electrical checks, general repairs & maintenance etc.
And Yet Councils/Government wont allow granny flats doing all they can to stallll approvals claiming that its too much a strain on sewerage and services which is just a handy lie as theyll approve multistory blocks of flats everywhere
I would try attempting to rent outside of the city, I've even gone as far out as Geelong (vline into work) or Pakenham. The housing quality is much better, cheaper and living standards is better too. Obviously it's an hour into the city but I think it's well worth it! Make the most of the time on the train with some study/movies etc.
There’s a housing crisis in the ouuter suburbs too. Particularly housing affordability for those on very low incomes or government benefits. Literally more than 99% of advertised rentals do not meet the expectations they cost under 30% of household income. Single income households particularly are facing very tough situations. Single older women are the single largest growing cohort of homelessness in Australia.
@@simoneryan4487 Yeah I agree on this statement completely but the situation is still worse in the inner suburbs, Pakenham (outer suburb) which is 50km away from Melb CBD gets maybe 8 people per showing while Malvern has 40+ per open. Both are tough and it isn't getting better.
That part where you worked out the landlord makes 160 a month is not even..add strata fees on 700 at least every 3 months means minus 300 for the landlord
Body corp, $5,800 pa Rates $1500 pa Electricity $400 per qtr if frugal with power. You are assuming every owner in the building is actually paying body corp.
Hey thanks! Glad you're enjoying. I am aiming for one long-ish video every two weeks, if not more (posting Thursdays). I'll no doubt sprinkle some shorts in there too.
Nope, the actual problem is due to lack of housing supply which is caused by wealthy investors because they can upcharge due to unending housing demand
@@harisdiz.5817 do you understand maths is not racist? It's a matter of statistics genius. If Australia had a 100k migration as in the past, we won't have this issue. Stop gaslighting and read macro business blog and get some knowledge
Immigration, immigration, immigration. You can come up with all the medium density housing in the world, but when you cram in half a million people per year, you're just pissing in the wind. Regular people used to be able to afford a stand alone house in Australia. If you actually cared about the average person you'd be demanding a total halt to immigration given current new home construction rates. This will only get worse. Australia is f^ucked and probably unsalvageable at this point. The spacious Aussie culture is virtually gone right along with living standards compared to even 20 years ago. Enjoy overpaying for your poorly insulated dog boxes...
Yeah it's out of control. 500k/year as a % of our total population is madness. The government is starting to tighten up on students doing BS degrees to visa hop which is something. Halting immigration is just not possible though. It does a lot for our country and economy. I feel like foreign investment, policies that favour properties as investments and terrible zoning are having a huge impact too, and is doing far less to benefit us. But immigration is 100% factoring into this in its current state.
@@therealzannonymousdoes it really do a lot for the economy and country though? Sure it temporarily props up the economy but we are seeing the limits of that now. It’s not doing a lot if Australia can’t exist on its own population. Despite all the blather about “skills shortages” we still have industry making this claim despite a million arrivals in the last ten years. Obviously “highly skilled” migrants are in the tiny minority. How many food delivery scooter drivers does Australia need? And that’s to say nothing of the erasure and loss of the Aussie culture that made Oz such a paradise to live in.
@@harisdiz.5817 Half of it is a weapon in WW3 which we are in the middle of, Russia and China now fund the gangs that control people smuggling and the more dangerous drugs market and pay the bribes to remove criminal records so they can send the worst people across (intermediary countries before they shred their passport) and also get them out of their own countries. The other half of migrants are normal decent people but also often caught up in it, we could handle them fine if it wasn't for the bs. Our own politicans refuse to do anything about it because they want their property investments to keep rising, they do not care at all about defending you from this literal weapon of war and they never have ever, only if it also helps their own business.
The reason rents are high in the CBD relative to purchase price is that there’s a lot of transitory people living there, like international students, who aren’t in a position to buy for a number of reasons.
The only reason someone would want to live , in a shoe box apartment is if they wanted to live in the inner city . Even then who would want to do that . Our country is empty compared to the countries you mentioned . American starter homes are huge 2 storey , double garage and car space infront of garage . most likely over 600sm block . Release lots of land in the outer suburbs , or no one is going to have babies .
Just remember some landlords are fantastic like myself but are being truely screwed by everyone, banks,dan andrews filthy land tax, BC fees rising,tenants who have become entitled thinking they can disrepect the properties etc etc
It’s very hard to get mortgage for small studio for 198k from the bank. So the vendor typically has to purchase with all cash. And the capital growth of those property is pretty poor too. The opportunity cost for the vendor is huge. Which is reflected in the rent the market is willing to pay. Those studio are typically rental. If no-one invest in those, there will be one less rental property for young student to live in. As not any of them can buy a place to live in while being a student.
totally agree. the body corp and strate fees are over the roof! i struggling to even keep up with the current mortgage too. but some of this city apartment are shocking! always choose suburbs instead of city!
Yes, INDEED, it is a total disgrace that foreigners buy properties and, in many, instances DON'T SPEND a dollar on remidial work to fix crap. Also, as is the case in Ultimo, Chinese buy properties and ONLY lease them to ISs, who cram 6 of themselves into a two-bedroom dump.
Currently house hunting. It's hell out here. I wouldn't bother if the current house I was living in didn't constantly have issues. It's really emotionally draining being constantly declined for houses. One of the houses I applied for the landlord apparently had such a hard time deciding they got their kid to pick names out of a hat and thought it would be a good idea to tell us. Maybe they thought it was cute? I personally found it mortifying. Spolier- we didn't get it. Salt in the wound.
@@Bozebo That's rubbish, with all these dating apps nobody meets in person these days. While I don't deny the market is screwed, people are making it tougher on themselves by wanting to live in the inner city where competition for shoe boxes in the highest.
@Bozebo I wonder how people have managed not being within spitting distance from each other in the past then? This whole FOMO thing is rubbish and a personal choice.
Regarding apt 3, as someone who is renting an apt in Melbourne and was trying to buy, you have to be aware the building Corp fees. For some of these shit apartments with cladding issues they were paying $10k a year just on building Corp fees. $192 pw just on that.
You don’t realise how lucky you are - I worked out you now pay an extra $82 per week ($344 mth), whereas I now pay an extra $294 per week 😭. And the first increase was $200 per week all at once! I would gladly swap my situation for yours any day.
Governments love to pump demand for housing. This includes tax policies (as you have stated) such as negative gearing, discounted capital gains and home owner grants etc, but also massive immigration. Don't get stuck in Left/Right debates about tax policies or immigration, they are both doing the same thing. Pumping up demand.
One reason rent is so much more than repayments on the mortgage is because the strata could be really high. If the lift is out, it's likely the sinking fund is empty and strata is going to be rising. There are apartments where the strata payments are thousands of dollars per quarter. That's on top of the mortgage and council rates one would need to pay for. Frankly, the apartment you were talking about, the owner would be losing money on that rent even if they had zero mortgage. EDIT: So, I got two of the apartments you showed confused. The apartment with the lift out of order was not the one that was listed both for rent and sale. A quick search for the apartment that was for sale shows the strata rate was $2,848.00 per quarter (also, no date on that so it could be out of date; it could be even more). The one with the out of order lift is likely significantly higher. That's one reason for the discrepancy between rent and mortgage.
Thanks for providing numbers! I found that figure after a scroll. I called the agent for the listing and turns out that was the annual figure. That was an old listing so I called the current agent out of curiosity and it was $900 per quarter, for the Hayward Lane property. I could understand a larger discrepancy for some real facilities like a gym pool sauna but just for a lift it seems pretty extortionate.
Cost breakdown from the agent: Hi Zannonymous, Thanks for your property enquiry regarding 205/62-68 Hayward Lane, Melbourne. Indicative selling price $180,000-$198,000 Please also kindly refer following approx. outgoings, Owners corp $910/quarterly Council rate $142/quarterly Water Rate $150/quarterly Property currently vacant, ready to move in or lease out for a great return. If you will need a copy of contract, please don’t hesitate to ask. Looking forward to assisting you further soon. Best Regards Kevin Zhang 0423 454 772 205/62-68 Hayward Lane, Melbourne
@@therealzannonymous yup, it's crazy. I don't know why buildings with lifts have such crazy maintenance but there you have it. When we were buying, we passed up a 3-bedroom apartment because the strata was $2,700/quarter. It was a building less than 10 years old and already had cracks. When I asked for more info from the agent, he said the owners had to pay for remedial works because the foundation was faulty. That's the other problem with apartments in Sydney/Melb/Brissy... the construction industry has become completely deregulated and is very dodgy now. I wouldn't buy anything built after 1999. Mascot Towers is a great example. Even with houses, you really should get a detailed independent inspection from someone competent before you buy.
@@IturaldeRodel Depending on how many floors and how many lifts, you are looking at approx $5K/year per lift per 10 floors just for annual servicing. Then every 20-25 years a major upgrade of the lift approx $250K per lift at current pricing.
You're right, it is all about perspective - but this sort of stuff just makes me so very very sad, and just want to hit the opt out button. When did we become like this? Isn't it illegal for them to rent those flats out in that sort of condition? Aren't there minimum standards that have to be met? I guess being a bit older, I can remember when it wasn't like this. I look at stuff like this and wonder how some people sleep at night. Probably a lot better than me! Thanks for posting.
Because there is no such thing? It’s 400 dollars + for A 1 bedroom apartment I. Footscray and even sunshine, unless ya want to live in something run down.
@khaddy72632u could come down to yourself as a renter. I've personally knocked back people trying to pay above my advertised rate based on rental history and overall things like job security and how well they present. If the rental applicant is a young casual worker with no savings wanting to pay above market rate vs an older person with a stable job that'd pay the lower amount, I'd rather take the older applicant with a stable job. A lot of it comes to risk profiling, if you're paying over and above for a run down place, more than likely you're seen as a risky proposition.
No one cares about your perspective as a landlord. We don't give a flying fuck about you actually, we care about developers, builders and the politicians who are letting the housing situation slide under their watch.
For anyone only thinking this is happening in Melbourne or only an Australian thing, think again. All of the countries in the world with this problem have the exact same issues. What are the odds? 1. Already has far too many building restrictions in place and a MASSIVE shortage of housing units for sale and rent. 2. A government that wasn't able to do the math but had 'feelings' their plan would work no matter. 3. Uncontrolled immigration to boost tax revenue with perks for students and young labour. 4. A certain country that had already destroyed their own housing market so their greed took them elsewhere. FYI, Vancouver and Toronto, Canada currently have average rents for tiny, one bedroom units for $2530/month. When will the greed finally cause society to implode on itself? Who will the ones who have been pushed out of their homes blame? Will there eventually be a rise in violence and theft as people can no longer stand it? Meanwhile a certain demographic of people behind all of this drive around in VERY $$$$$$ cars and live in MEGA $$$$$$$ homes profiting off our misery. They are easy to spot which makes me wonder how sociopaths aren't starting to worry as they stick out more and more as the rest of us have to work harder harder just to keep a roof over our heads.
property developers, lobbyists and politicians… awful mix for a prosperous population, great mix for a few affluent individuals. want to fix the problem… vote for a local mp that will build public housing, that will sell that public housing at just above cost price to tenants only. vote for someone that will stop foreign ownership of residential property and all land. vote for someone that will go hard and regulate the property development industry.
That broken lift apartment (shitbox) -- that lift was broken 4-5 years ago, the guy wanted me to drag a steam cleaner up 14 floors 😵😵😵 wonder if it ever really got fixed
As a former landlord I sold most of me property after covid and refuse for people to use what I have left, the government has made it to easy for a tenant to steel and damage my house with little to no repercussions to the tenant. Most landlords I know did the same thing. Landlords basically have no rights anymore so we sold our rental properties so now there aren't any rentals left. ( that's the unspoken truth about it) blame the government
Rent is high because apartments have no capital growth, if you take out a mortgage as an investment your only returns are rent/short stay, that one in Hayward lane hasn't even had 80% growth since the late 90s
I used to 160/week for a nice large bedroom in Carnegie just a few years ago, much prefer taking the train into the city than living like a hobo sardine in the cbd
If you buy you would use the VHF which the goverment takes 25% equailty but you only need a 5% deposit. I bought a 2BR apartment last year in Footscray while on minimum wage the VHF made it doable. Labor is looking to roll it out national at 40% equality and a 2.5% deposit. Places are limited in the VHF but it's so popular they're keeping on expanding it.
To be fair, as a landlord in Victoria, I am likely to completely walk away from it all. The new regs and land tax make it unaffordable and landlords have no protection against problem tenants. I suspect there are a number of landlords in the same situation, once that starts, let's see who the renters and the government try to blame when rentals disappear.
And who are you going to sell your rental property to? Another investor? No renter will be complaining when you put your property on the market. Hopefully lots of investors will flood the market all at once.
@kieranpeet7167 will be selling to someone who doesn't know any better and thinks its a good idea to try and be a landlord. Then it'll dawn on them as well that it isn't worth the trouble when some renter trashes their place and they don't have a leg to stand on. At which point they'll still to continue the vicious cycle. I've had tenants that turned a fully renovated apartment into a mould filled and rodent infested mess. Was I able to claim the bond (which incidentally didn't cover the damage or perhaps kick out the tenants)? I'll let you guess.
@khaddy72632u nah, let's just screw the land lords and then blame them when the new ones screw the rental market by jacking up prices. Better yet, might as well start praying for the government to fund social housing.... oh wait sorry they can't afford that. Dang poor renters.
6:27 - banks won't lend you that money for the apartment- so you'll have to buy the apartment in cash What do you believe the alternative is to making it worth the landlords while and them making a profit for their trouble?
I mean, you’re looking at spots where everyone wants to live. If people just sacrificed a little bit more and moved further out, you can get a whole house for $500. It would obviously take longer getting to work by train etc but you wouldn’t be living in 10m2 house. Who would have thought the demand for a place in the middle of the city would have so many applicants 😅
There are a number of things the government could do to improve the situation but instead they are making 'announce-ables' which are policies designed to make it look like they are doing something but have zero chance of making a real impact. Which is why I wouldn't waste time hoping the government will fix anything because I honestly don't think they want to..
6:20 yeah I didn't get this either until you have to think of all the issues that a owner needs to face. I.e. still have to pay strata fees, property fees, and then any repairs (both to the individual unit or the whole building). Overall, while it isn't really worthwhile to rent an apartment, it definitely is a bigger liability to buy an apartment if it turns out to be a crap build and you now have to pay tens of thousands in strat fees a quarter
100 percent I was just speaking to this. Its becoming very noticeable the outer suburbs becoming more dense yet closer to the cities remain large beautiful big homes. Seems pretty crook to me.
I think it's poor to say "I wish the government would do something about it". What we need is people saying " I wish the government would do _____ so then people have affordable and better quality standards if living"
People like to blame migrants for the housing situation. The truth is 90% of the student visa / working holiday people I know live in these conditions. The problem is the Australian government, and their utter unwillingness to do anything REAL about the situation. Housing in australia has a speculation problem, in which investment driven owners own a significant % of the housing, which in turn increases the prices of housing due to speculation. Furthermore, the tax incentives that exist in Australia are very UNIQUE to Australia, nowhere in the world will you find such a tax haven for housing. It is SAFER and MORE PROFITABLE to buy a bunch of houses than to actually buy stocks or investing your money in business. Kick out all the migrants you want, the problem will continue to exist because at the root, they are not the cause. The fact that housing is an investment and not a place to live is the problem in Australia.
I rent to a family member and we discovered that to qualify for negative gearing, you have to charge market rate, whether you want to or not. I know the majority are just scumbags but a lot of the time you can't charge a reasonable amount without huge tax penalties. Fault in the laws.
Location Location Location that's where you start to save the $. I live SE Melbourne (approx 80KM away) I pay $288 / week Mortgage like you posted for a 2 Bdr 200 square meter detached unit . I can walk to a VLine bus terminal that takes me directly to Spencer street station in Melbourne. Living further out while it costs you time it saves on $ and driving stress, plus I'll own my home at cheaper than Rental prices.
Politicians have ruined Australia.
We need to protest and ensure they are accountable.
"I'm just looking for somewhere a bit bigger" had me rolling
The grim reality being that the landlord's understanding is actually correct. They can charge whatever they like and there will be someone willing to pay it.
True and the law does not provide any detail on what is a reasonable increase. So if the landlord describes the increase calculation they use and the increase is lower than that it gets hard for the tenant. Of course you could sign a longer term lease and lock the landlord into specified increases if they agree.
I get thr feeling they may rent properies out to migrants and students who may not be familiar with all of the laws or speak English that well...
Stop migration of untalented workers until demand and supply adjust. Most of Aus’s rental issues boil down to there being too many people
@@vk3fbab tbh, everyone is getting screwed over but the builders.
Just look at the recent news where apartment owners have to pay tens of thousands a quarter to fix up their dodgy builds, while the original developer went bust.
That's why the CFMEU is too powerful.
I like the idea of unions and support the existence of unions to counter bad employers. But when the unions get too strong you get rort and BS going the other way as well. You need balance
$500 per person per week in that shitehole, oh heck no
I live in Sydney, about 3-4ks from Central and Town Hall railway stations and can tell you that there are a million shitpot apartments in between those places where you get 4 to 6 international students cramming into these abysmal abodes.
Back in 2016, I went with a pal of mine who is a plumber and he took me to 4 jobs in that space and the units were disgraceful.
Medium density living sucks with the current Australian building standards and dodgy developers/builders barely scraping the minimum on standards to maximise profit. It's a choice between fire cladded apartments or unwittingly listen to my neighbour take a dump in the new apartment block next door because the walls and windows are so thin.
Agreed that the building standards need to change in a big way. Our cities and commutes will continue to balloon and Americanise until we can make decent quality apartments people are happy to live in.
If the "builders barely scraping the minimum on standards" that would still be OK because it would mean they were actually meeting the minimum standards. The problem is that they're not. They're cutting corners, not meeting minimum standards, and because of deregulation they just get their mates to sign off on the inspections. ANY time you see someone talk about "cutting red tape", it means deregulation and the removal of laws that are usually designed to protect consumers from exactly the kind of thing that has been happening in the Australian building industry for the last 2 decades.
Anyone who disagrees can look up the Mascot Towers in Sydney and then come back and try to defend those developers... if they can.
@@IturaldeRodel Curiously enough it was the CFMEU that made noise about dodgy combustable cladding, Asbestos riddled plasterboard dodgy lifts that you can't get spare parts for.and floor tiles all brought in on the cheap from China. What did they get,oh yeah shut down by the courts then set upon by news ltd hacks who now have Labor attacking them. We have a federal election coming up. maybe a house full of independents may get things going as those that should have, stopped listening to those they should be listening too.
I love the classic moaning at 3am from the couple upstaires 😭
Me in Sydney thinking these prices look really cheap 💀
It’s not just the property value. The body corp and land tax normally kills yoi.
As a landlord renting out a CBD apartment, mine looks frigging awesome compared to this. Great views and working lifts. The thing to factor into costs is OC fees. In the building i own this is over 7000 if the manager Can get the budget right. Lifts, pools, gyms, cleaners, concierge, insurance and saunas cost money. Also factor in capital growth of Melbourne CBD apartments is probably negative so you have to be getting cash flow positive. This means no negative gearing. Just a landlord's perspective.
However things that suck are that I have to pay for these bullshit electrical and gas inspections. I say they are bullshit because there introduction was not based upon evidence. Just seems like a good idea. I'm on the hook to fix a whole bunch of things within two days of being notified. Which can be really hard sometimes with trades hard to come by and parts etc. luckily I haven't needed to do that yet.
@@vk3fbabMaybe invest in a different type of business?
Too many get rich investors is the real issue
Fuck your landlord perspective.
@@Liam-k8k problem is actually the building inspection and quality. I'm going to guess that any of the newer apartments won't last 20 years (even if that).
Just watch some videos from Site Inspections
A couple of things, firstly, banks will not lend if an apartment doesn't reach a minimums sqm (50sqm from memory), secondly, some banks will not give you a 'full' LVR for a city apartment say 60-70% (for example most home loans are maximum LVR of 80% without LMI), thirdly, some apartment buildings are 'do not lend'.
Having said all that, buying those apartments still may include a HUGE catch (people don't seem to pay attention to these 'little things'). Under $300K may seem like a relative bargain except it doesn't take into account the $60K the owner (you, if you buy it) has to contribute to (say) cladding or current issues such as lift repair, and an exorbitant annual body corporate fee incorporating a sinking fund (but more often or not, overpriced body corporate fees to a related entity). I saw one apartment I liked in a redeveloped older building, it was fantastic and rock solid with minimal issues, body corporate fee was $10K per year because they decided to render the brick when they redeveloped it and it needs to be repaired every few years. $10K + any other new major works fee they have to collect + all your other fees + mortgage. It's no wonder a catastrophic economic depression is coming.
ALWAYS ALWAYS ALWAYS check the s 32 declaration (in Victoria) and read all the body corporate reports and notes.
Maybe ramping immigration to 560K net a year for the lasty 2 years wasn't such a good idea.
It's weird you think peopl ehaving space is bad, but never question WHY our housing market is so sheet.
Imagine if 800,000 less people were int eh country than we currently have.
Would we be experiencing the current housing and rental affordability crisis?
I reckon a big reason why living in Melbourne CBD is so high is because of international demand.
Back when Covid started international students weren’t allowed to migrate in so demand wasn’t high. As a result I got a fantastic apartment for $350/week.
Soon as Covid restrictions went out and international students were allowed in, rent skyrocketed. My rent went up gradually to $750/week
Demand makes the prices go up. A lot of international students I know come from very wealthy families so they’re ok with paying an exorbitant amount.
If you put two and two together you come with the working class who get paid just enough to get by vs wealthy students with a trust fund to their name. Obviously locals will have a harder time to find a place
During lockdown the owners were offering massive discounts as all the students returned home and they had no way of paying their investment properties. I has a 4 bedroom house in Epping that was $400pw the owner was about to lock us in for $300 for 1 year.
After lockdown he said he was selling the house which we later found out was bullshit as we saw it for rent for $650 pw
Drove pass the other day seemed like there were 2 Indian families living there
Asian tightwad landlords most based in China and millions of OS students what could go wrong
@@Liam-k8k Yep Chinese and Indian make up over 50% of new house purchases in Australia whilst Aussies make up 22%yet its illegal for an Aussie to own a milk bar in China
Sammzz- you are 100% correct. Same thing happened to me but with a slight difference - mine did not go up gradually (more later). I live near a uni so during the border closure I secured this apartment at $290 a week, as soon as the borders opened and students came back, lease expired except my landlord got greedy - he raised it by $200 PER WEEK all at once. It wasn’t a good time in my life to move so I renewed but for six months. And bam, last month they’ve put the rent up again, this time by $100 PER WEEK. Needless to say I’m in severe financial distress. I’m looking as we speak at other places to move much farther out.
@@romanr9977 Indian/Chinese landlord?
The sale price vs rental on Apartment #3 really shows that landlords are gouging the prices on rentals. Generally, or at least up until recently, the rental price was roughly the same proportion of the purchase price. Example, if the Apartment cost $335,000 to buy, the rent price per week was around $335pw.
Because of the prices (rental and purchase) in Melbourne over the last decade, it has pushed up prices in the outer suburbs and even the country commuter-belt areas.
I suspect prices may drop (at least a bit) soon, it has very much been a bubble over the last 5 years. There are beginning signs of this in parts of the US that it is starting to happen (at least properties not getting sold).
Some of those CBD apartments should have been condemned. I guess they are preying upon foreign students to rent those horrid places.
Thats 5% return BEFORE land tax, council rates, inspections and dealing with the headaches of tenants. You can get 5% from a term doposit. Why bother being a landlord?
It's not gouging. The apartment is for sale too, if you want you can just buy it instead of renting. You got both options. How is that gouging?
Booms end bro..
@@georgekem I think we will see some correction in the next 1-2 years.
I live at 62-68 Hayward lane. It's a full blown nightmare!!!!
If you'd be open to sharing I'd be keen to hear about your experience there
Tell us more please
Yeah but look how close you are to Stalactites !!
I live in Adelaide and I'm incredibly lucky. I have a three bedroom, two bathroom house all to myself and only pay $460 a week. Watching this only makes me feel more grateful for what I have.
Yeah, but you have to live in Adelaide.
you're paying to live in a retirement village that closes up at 4:30 even though the sign says 5:00.
I hated living in Adelaide, nothing to do, no jobs, no growth, no new land being developed, no projects, basically there was only that little german town to visit and glenelg beach which was always packed with tourists.
That state is going to die in the next 5 decades, too many old people and not enough youth to grow it and the youth that does live there is all stifled and suppressed.
The amount of dumpster diving I saw while on the train into the city every week was astounding, shows you just how close to poverty people are in that area.
That was 7 years ago.
@@RexhunterjDon't have more time than 2030.
Its changing a bit which is insane. If Adelaide isn't holding against the housing situation and given the comments here no one actually wants to live in Adelaide then that's concerning.
Adelaide still has a university that attracts students and migration programs that bring in workers.
Assuming the housing inflation has anything to do with either of these two things.
Gawd rental has gone up but our wages stay the same lol The prices are borderline criminal
Really enjoyed this and your comparison with the UK and other highly developed countries is spot on.
You're spot on. I'm originally from the UK. I lived in dreadful places while a student back in the mid 90s.You're also right about the number of Aussie's working there back then. The pound was so strong. I worked with many Aussies back then (in hospitality) who thought the pay was great. Now it's completely reversed, and I'm sure the accomodation is not much better. I think you did pick some unfortunate properties to look at. Those ones with no natural light.. for $500 a week, terrible! And that one on the 12 floor with no lift - what the heck? There are far better managed buildings in Southbank which do offer fairly good value for money, especially compared with London or New York. I rented in Southbank for 4 years. It was a great place with fantastic views and was very well managed. You just got to be picky and don't accept the types of apartments that you showcased... especially at those prices.
Sharehousing here is around $400p/wk too if you're anywhere near the city. I was looking for a place only a couple of months ago and the amount of shared places that are $500-$700 per week was insane. I'm currently in a place in Southbank that is "crazy cheap" at $380 per week (cheap because bills are included) but it's a 2 bedroom apartment with 4 people - 2 longer term tenants in the bedrooms (myself included, the bedrooms are thankfully not shared) and 2 people in the living room with a space divider separating them. It means the balcony is also off limits because it's technically attached to someone's "room" and the property manager can't understand why the single bathroom has a mold problem in a small apartment where the shared spaces have zero windows or useable doors for ventilation. The living room "rooms" are essentially AirBnBs so people generally only stay for one to three weeks but are always full - the owners will be racking the $$$ in with this set-up. But hey, compared to the alternatives it's "cheap"
The problem is the housing crisis and shortage of properties at every inspection there’s at least 50 100 people applying for every property makes it impossible to get anything now
The Haywood lane apartment, you forgot to include the crazy body corporate fees in your calculation. Also land tax. That's probably why it's for sale because the owner can't get much of a return, even with crazy rent
Boomers are off their rocker if they think they had it harder than today,i am 60 and i cannot believe what we are asking of our current and future generations,To buy here in Sydney would work out to be 20yrs of all my annual income.
Terrible . Many Australians are living for Greece , Montenegro. Vietnam, Thailand , those who can work on line
I lived in two apartments in Docklands and one in Southbank between 2019 and 2022. Things were not this bad back then. Hell my Southbank apartment was 2 bedroom and two bathroom and costed me only 480 a week (that’s cause of covid time). Now I bought a house for myself so thankfully out of this rental crisis
These landlords should be ashamed of themselves, 3rd world behaviour, disgusting
problem is lenders are very reluctant to give loans to apartments
apartments leverage is low, and there is virtually no capital gain
naturally, apartments in Melbourne demand a higher yield
This and despite commbank more willing to loan for properties under 50sqm (or was it 40sqm where most banks go and say no) I doubt even commbank would give out a loan for a studio apartment.
There are more costs than just the mortgage repayment, you have owners corp fees, letting fees, management fees, etc
We’re in Brisbane and got an email this morning our rents going up to $720 a week 😂😂😂 this is legit ridiculous
I hope it all works out for you. That’s just crazy and ridiculous but it seems it happens way too often.
Can I ask what it was before the increase? I’m bracing myself…
Move to Toowoomba then. If your boss wanted you to work 10 hours per week extra without pay would you? No, of course not. Why should your landlord be expected to accept the same ridiculous proposal? If you don't want to rent then buy a property. Only problem is that it is much harder than renting.
How much was your rent before the increase?
@@SkippyTheRedKangaroo exactly...my mortgage is $1500 a week not a month i live in Sydney. If i can't pay it i'm out that's how economy works all these people bitching about how life is hard well...yeh it fucking is!
i'm looking at a campervan that i'm gonna live in next week. the mjor parties know that 2/3rds of Australians own or have a mortgage so they have no incentive to make houses more affordable despite what they might say. their policies show they're the enemy of renters and will continue to be
Rule of thumb for rental has always been pretty much property value divide by 1000 is the weekly rent. So a $500,000 house can expect to get for $500 per week in rent. This is basically the property generating 5% returns each year in rental income (think of it as dividends if you want), add on the property appreciating value each year (share price) historical average you will mostly get 10% returns or more. Meaning in most areas real estate investments has been outperforming the stock market over the past few decades. In last few years in particular the house prices surged so much that more and more investors have been happy to buy without even seeing the property and leave the house vacant forgoing rent in favour of speculative investment and selling for profit once prices reach high enough, similar to day traders.
Haven't been to Britan for 11 years - 2012. But in the previous decade I went there on 8 seperate occasions (had been there twice prior in 1984, and 1996). I always stayed in hotels/motels, but spoke to 6 people who said they'd lived in Australia and confirmed what you've said
But at this very moment I can state categorically from contacts there and, also, UA-camrs that, 50% of the people there are in Third World type scenarios. And another 20% are in shoulder-deed struggle-street social and finacial positions.
As for Vancouver (and throw Tortonto in as well) everything you say is totally correct.
But what you negelected to say about Britain, and, more so, with Canada is how large-scale immigration, as it is here, too, in our big cities, is a big crux of the affordibility and availability problems. Where I live in the inner-city precinct of Alexandria/west Waterloo/Redfern, the bane of the problem is with international students usurping tennants.
However, the government claims it is going to stamp out tennants getting the flick.
Anyway, I'll believe that when I see it.
The apartment to buy might be cheap, body corp would be through the roof. They clearly aren't getting their money worth
The calculation showing the landlord is $160 weekly cash in pocket after mortgage repayments deducted from rent, is not accurate. It doesn't consider owners corporation contributions (can be significant if including sinking fund and special levies), land tax, council rates, property management fees, annual gas/electrical checks, general repairs & maintenance etc.
And Yet Councils/Government wont allow granny flats doing all they can to stallll approvals claiming that its too much a strain on sewerage and services which is just a handy lie as theyll approve multistory blocks of flats everywhere
Body corp fees and insurance would boost the weekly cost a bit for the owners but they are still overpriced.
You forgot to mention how demand has been inflated by excessive immigration. Hence higher rents are easily achieved on the supply side.
People are the sugar tax in this ponzi scheme.
I would try attempting to rent outside of the city, I've even gone as far out as Geelong (vline into work) or Pakenham. The housing quality is much better, cheaper and living standards is better too. Obviously it's an hour into the city but I think it's well worth it! Make the most of the time on the train with some study/movies etc.
Great solution .
There’s a housing crisis in the ouuter suburbs too. Particularly housing affordability for those on very low incomes or government benefits. Literally more than 99% of advertised rentals do not meet the expectations they cost under 30% of household income. Single income households particularly are facing very tough situations. Single older women are the single largest growing cohort of homelessness in Australia.
@@simoneryan4487 Yeah I agree on this statement completely but the situation is still worse in the inner suburbs, Pakenham (outer suburb) which is 50km away from Melb CBD gets maybe 8 people per showing while Malvern has 40+ per open. Both are tough and it isn't getting better.
I'm convinced the cost of commercial rental is also why cafes and restaurants are so expensive.
That part where you worked out the landlord makes 160 a month is not even..add strata fees on 700 at least every 3 months means minus 300 for the landlord
Some strata fees depending on building can be over 1k a month. Always check before you buy.
You’re forgetting about the $50,000 + that each apartment owner is forced to pay to replace the flammable cladding….
Body corp, $5,800 pa Rates $1500 pa Electricity $400 per qtr if frugal with power. You are assuming every owner in the building is actually paying body corp.
@@NortyNige do you even know how a body corp works lol
As a melbournian for over 43 years, I'm so ashamed and sickened by these living conditions here. This is akin to Hong Kong apartments here....
Good commentary and great topics. Looking at a consistent release cycle?
Hey thanks! Glad you're enjoying. I am aiming for one long-ish video every two weeks, if not more (posting Thursdays). I'll no doubt sprinkle some shorts in there too.
negative gearing actually lowered the rental rate. If it didn't exisit, the tenants would have to pay much higher rent.
Any Australian rent video that doesn’t mention immigration has no business pointing out the problems.
Point out that immigrants are more likely to work in construction than Aussies?
💯
Nope, the actual problem is due to lack of housing supply which is caused by wealthy investors because they can upcharge due to unending housing demand
Unless your ancestors are native to this land, you should be quite.
@@harisdiz.5817 do you understand maths is not racist? It's a matter of statistics genius. If Australia had a 100k migration as in the past, we won't have this issue. Stop gaslighting and read macro business blog and get some knowledge
Immigration, immigration, immigration. You can come up with all the medium density housing in the world, but when you cram in half a million people per year, you're just pissing in the wind. Regular people used to be able to afford a stand alone house in Australia. If you actually cared about the average person you'd be demanding a total halt to immigration given current new home construction rates. This will only get worse. Australia is f^ucked and probably unsalvageable at this point. The spacious Aussie culture is virtually gone right along with living standards compared to even 20 years ago. Enjoy overpaying for your poorly insulated dog boxes...
Yeah it's out of control. 500k/year as a % of our total population is madness. The government is starting to tighten up on students doing BS degrees to visa hop which is something.
Halting immigration is just not possible though. It does a lot for our country and economy. I feel like foreign investment, policies that favour properties as investments and terrible zoning are having a huge impact too, and is doing far less to benefit us.
But immigration is 100% factoring into this in its current state.
@@therealzannonymousdoes it really do a lot for the economy and country though? Sure it temporarily props up the economy but we are seeing the limits of that now. It’s not doing a lot if Australia can’t exist on its own population. Despite all the blather about “skills shortages” we still have industry making this claim despite a million arrivals in the last ten years. Obviously “highly skilled” migrants are in the tiny minority. How many food delivery scooter drivers does Australia need? And that’s to say nothing of the erasure and loss of the Aussie culture that made Oz such a paradise to live in.
For what purpose is the mass-importation do you think?
@@JamesTaylor-n1udivision and tension
@@harisdiz.5817 Half of it is a weapon in WW3 which we are in the middle of, Russia and China now fund the gangs that control people smuggling and the more dangerous drugs market and pay the bribes to remove criminal records so they can send the worst people across (intermediary countries before they shred their passport) and also get them out of their own countries. The other half of migrants are normal decent people but also often caught up in it, we could handle them fine if it wasn't for the bs. Our own politicans refuse to do anything about it because they want their property investments to keep rising, they do not care at all about defending you from this literal weapon of war and they never have ever, only if it also helps their own business.
The reason rents are high in the CBD relative to purchase price is that there’s a lot of transitory people living there, like international students, who aren’t in a position to buy for a number of reasons.
The only reason someone would want to live , in a shoe box apartment is if they wanted to live in the inner city . Even then who would want to do that . Our country is empty compared to the countries you mentioned . American starter homes are huge 2 storey , double garage and car space infront of garage . most likely over 600sm block . Release lots of land in the outer suburbs , or no one is going to have babies .
Really good and interesting video from a small creator
Just remember some landlords are fantastic like myself but are being truely screwed by everyone, banks,dan andrews filthy land tax, BC fees rising,tenants who have become entitled thinking they can disrepect the properties etc etc
It’s very hard to get mortgage for small studio for 198k from the bank. So the vendor typically has to purchase with all cash. And the capital growth of those property is pretty poor too. The opportunity cost for the vendor is huge. Which is reflected in the rent the market is willing to pay. Those studio are typically rental. If no-one invest in those, there will be one less rental property for young student to live in. As not any of them can buy a place to live in while being a student.
body corp fees not factored in, there is a reason that place was going for only 190k, Id say they would be pretty high
totally agree. the body corp and strate fees are over the roof! i struggling to even keep up with the current mortgage too.
but some of this city apartment are shocking! always choose suburbs instead of city!
A lot of Indian and Chinese brought in my area and started renting them out. Nobody believed me . .
Yes, INDEED, it is a total disgrace that foreigners buy properties and, in many, instances DON'T SPEND a dollar on remidial work to fix crap.
Also, as is the case in Ultimo, Chinese buy properties and ONLY lease them to ISs, who cram 6 of themselves into a two-bedroom dump.
Currently house hunting. It's hell out here. I wouldn't bother if the current house I was living in didn't constantly have issues. It's really emotionally draining being constantly declined for houses. One of the houses I applied for the landlord apparently had such a hard time deciding they got their kid to pick names out of a hat and thought it would be a good idea to tell us. Maybe they thought it was cute? I personally found it mortifying. Spolier- we didn't get it. Salt in the wound.
Why don't people just rent somewhere in the suburbs? You can get a whole house less than these prices.
Fear Of Missing Out. If you aren't close to other people your age you cant find a partner and will never afford to survive in the future.
@@Bozebo That's rubbish, with all these dating apps nobody meets in person these days. While I don't deny the market is screwed, people are making it tougher on themselves by wanting to live in the inner city where competition for shoe boxes in the highest.
@Bozebo I wonder how people have managed not being within spitting distance from each other in the past then? This whole FOMO thing is rubbish and a personal choice.
@@Bozebo Lame answer of the week.
currently paying 3100 per month just a bit outside of the cbd, It has gone up from 1950 2 years ago when we first moved in. unbelievable
Regarding apt 3, as someone who is renting an apt in Melbourne and was trying to buy, you have to be aware the building Corp fees.
For some of these shit apartments with cladding issues they were paying $10k a year just on building Corp fees. $192 pw just on that.
The Aquarium line psych out 😂😂
Yeah got a rent increase may 23 last year from $ 956.00 to 1,108 Now they have put it up again from $1,108 to $1,300. W.T.F. Is going on.!!!!
My AGL gas increased their rates 85% in a single year! None of it should be legal, but when the law makers are the ones profiting it can never change.
You don’t realise how lucky you are - I worked out you now pay an extra $82 per week ($344 mth), whereas I now pay an extra $294 per week 😭. And the first increase was $200 per week all at once! I would gladly swap my situation for yours any day.
You did not factor in body corp fees and insurance.
Renters have no idea of what property actually costs
Governments love to pump demand for housing. This includes tax policies (as you have stated) such as negative gearing, discounted capital gains and home owner grants etc, but also massive immigration. Don't get stuck in Left/Right debates about tax policies or immigration, they are both doing the same thing. Pumping up demand.
Great to hear someone acknowledge how good it is here in Australia, and how good we have it.
just need to stop the negative gearing and real reducing immigration numbers otherwise even building more home wont solve it.
All those apartments looked shit. You couldn't pay me to live there. Especially the one where the windows wouldn't open.... total fire trap.
One reason rent is so much more than repayments on the mortgage is because the strata could be really high. If the lift is out, it's likely the sinking fund is empty and strata is going to be rising. There are apartments where the strata payments are thousands of dollars per quarter. That's on top of the mortgage and council rates one would need to pay for. Frankly, the apartment you were talking about, the owner would be losing money on that rent even if they had zero mortgage.
EDIT: So, I got two of the apartments you showed confused. The apartment with the lift out of order was not the one that was listed both for rent and sale. A quick search for the apartment that was for sale shows the strata rate was $2,848.00 per quarter (also, no date on that so it could be out of date; it could be even more). The one with the out of order lift is likely significantly higher. That's one reason for the discrepancy between rent and mortgage.
Thanks for providing numbers! I found that figure after a scroll. I called the agent for the listing and turns out that was the annual figure. That was an old listing so I called the current agent out of curiosity and it was $900 per quarter, for the Hayward Lane property.
I could understand a larger discrepancy for some real facilities like a gym pool sauna but just for a lift it seems pretty extortionate.
Cost breakdown from the agent:
Hi Zannonymous,
Thanks for your property enquiry regarding 205/62-68 Hayward Lane, Melbourne.
Indicative selling price $180,000-$198,000
Please also kindly refer following approx. outgoings,
Owners corp $910/quarterly
Council rate $142/quarterly
Water Rate $150/quarterly
Property currently vacant, ready to move in or lease out for a great return.
If you will need a copy of contract, please don’t hesitate to ask. Looking forward to assisting you further soon.
Best Regards
Kevin Zhang
0423 454 772
205/62-68 Hayward Lane, Melbourne
@@therealzannonymous yup, it's crazy. I don't know why buildings with lifts have such crazy maintenance but there you have it. When we were buying, we passed up a 3-bedroom apartment because the strata was $2,700/quarter. It was a building less than 10 years old and already had cracks. When I asked for more info from the agent, he said the owners had to pay for remedial works because the foundation was faulty.
That's the other problem with apartments in Sydney/Melb/Brissy... the construction industry has become completely deregulated and is very dodgy now. I wouldn't buy anything built after 1999. Mascot Towers is a great example. Even with houses, you really should get a detailed independent inspection from someone competent before you buy.
@@IturaldeRodel Depending on how many floors and how many lifts, you are looking at approx $5K/year per lift per 10 floors just for annual servicing. Then every 20-25 years a major upgrade of the lift approx $250K per lift at current pricing.
Welcome to Australia no regulations or respect for buildings and renters. The govmt will do nothing many politicians own more than 1 property.
Good joke. There's an abundance of regulations controlling rental property ownership, especially in Vic
You're right, it is all about perspective - but this sort of stuff just makes me so very very sad, and just want to hit the opt out button. When did we become like this? Isn't it illegal for them to rent those flats out in that sort of condition? Aren't there minimum standards that have to be met? I guess being a bit older, I can remember when it wasn't like this. I look at stuff like this and wonder how some people sleep at night. Probably a lot better than me! Thanks for posting.
it´s a great video.
Great content and commentary! The renal market is tough atm but it was insightful to hear about your experiences in the UK
Great video mate!
If you don't realise this is largely down to greedy real estate agents, then you are not considering the facts.
You missed the main reason why rents are out of control: Rampant immigration
shhhhh don't talk about the elephant in the room
Main reason why peopledont hold their governments accountable for maintaining and building public housing is because they blame immigration
Why dont you take a 30 min train ride for a real nice room for $250-300 per week
Because there is no such thing? It’s 400 dollars + for A 1 bedroom apartment I. Footscray and even sunshine, unless ya want to live in something run down.
im 50 min away and im still 450 per week 2 bedder and stinky carpets lmao
@khaddy72632u could come down to yourself as a renter. I've personally knocked back people trying to pay above my advertised rate based on rental history and overall things like job security and how well they present. If the rental applicant is a young casual worker with no savings wanting to pay above market rate vs an older person with a stable job that'd pay the lower amount, I'd rather take the older applicant with a stable job. A lot of it comes to risk profiling, if you're paying over and above for a run down place, more than likely you're seen as a risky proposition.
No one cares about your perspective as a landlord. We don't give a flying fuck about you actually, we care about developers, builders and the politicians who are letting the housing situation slide under their watch.
@@wocoom1 risky population my ass, the landlords who cant pay their IP mortgages are a risk to society. this house was $260 pw not even 2 years ago
yeah we're cooked
For anyone only thinking this is happening in Melbourne or only an Australian thing, think again. All of the countries in the world with this problem have the exact same issues. What are the odds?
1. Already has far too many building restrictions in place and a MASSIVE shortage of housing units for sale and rent.
2. A government that wasn't able to do the math but had 'feelings' their plan would work no matter.
3. Uncontrolled immigration to boost tax revenue with perks for students and young labour.
4. A certain country that had already destroyed their own housing market so their greed took them elsewhere.
FYI, Vancouver and Toronto, Canada currently have average rents for tiny, one bedroom units for $2530/month.
When will the greed finally cause society to implode on itself? Who will the ones who have been pushed out of their homes blame? Will there eventually be a rise in violence and theft as people can no longer stand it?
Meanwhile a certain demographic of people behind all of this drive around in VERY $$$$$$ cars and live in MEGA $$$$$$$ homes profiting off our misery. They are easy to spot which makes me wonder how sociopaths aren't starting to worry as they stick out more and more as the rest of us have to work harder harder just to keep a roof over our heads.
property developers, lobbyists and politicians… awful mix for a prosperous population, great mix for a few affluent individuals.
want to fix the problem…
vote for a local mp that will build public housing, that will sell that public housing at just above cost price to tenants only.
vote for someone that will stop foreign ownership of residential property and all land.
vote for someone that will go hard and regulate the property development industry.
That broken lift apartment (shitbox) -- that lift was broken 4-5 years ago, the guy wanted me to drag a steam cleaner up 14 floors 😵😵😵 wonder if it ever really got fixed
Odd how you missed the impact of increased demand via the unprecedented tsunami of mass migration.
Oh yeah, screw the round eyes for as much as possible!
As a former landlord I sold most of me property after covid and refuse for people to use what I have left, the government has made it to easy for a tenant to steel and damage my house with little to no repercussions to the tenant. Most landlords I know did the same thing. Landlords basically have no rights anymore so we sold our rental properties so now there aren't any rentals left. ( that's the unspoken truth about it) blame the government
Rent is high because apartments have no capital growth, if you take out a mortgage as an investment your only returns are rent/short stay, that one in Hayward lane hasn't even had 80% growth since the late 90s
blame it on migration
I used to 160/week for a nice large bedroom in Carnegie just a few years ago, much prefer taking the train into the city than living like a hobo sardine in the cbd
If you buy you would use the VHF which the goverment takes 25% equailty but you only need a 5% deposit. I bought a 2BR apartment last year in Footscray while on minimum wage the VHF made it doable. Labor is looking to roll it out national at 40% equality and a 2.5% deposit. Places are limited in the VHF but it's so popular they're keeping on expanding it.
I really don't want the government to own a share of my house
@@enijize1234 don't do it then . Problem solved.
@@LeslieMorris achieved
To be fair, as a landlord in Victoria, I am likely to completely walk away from it all. The new regs and land tax make it unaffordable and landlords have no protection against problem tenants. I suspect there are a number of landlords in the same situation, once that starts, let's see who the renters and the government try to blame when rentals disappear.
And who are you going to sell your rental property to? Another investor? No renter will be complaining when you put your property on the market. Hopefully lots of investors will flood the market all at once.
@kieranpeet7167 will be selling to someone who doesn't know any better and thinks its a good idea to try and be a landlord. Then it'll dawn on them as well that it isn't worth the trouble when some renter trashes their place and they don't have a leg to stand on. At which point they'll still to continue the vicious cycle.
I've had tenants that turned a fully renovated apartment into a mould filled and rodent infested mess. Was I able to claim the bond (which incidentally didn't cover the damage or perhaps kick out the tenants)? I'll let you guess.
oh no wont someone think of the landlords
You poor fucking baby. Lemme get my tiny violin.
@khaddy72632u nah, let's just screw the land lords and then blame them when the new ones screw the rental market by jacking up prices. Better yet, might as well start praying for the government to fund social housing.... oh wait sorry they can't afford that. Dang poor renters.
Thank you for shining a light on the overpriced substandard propertiesrenters have to shell out for.
LOL got me with the aquarium
Yeah me too! So funny though.
5:38 wow what artistic neighbors you'll get. SOLD
6:27 - banks won't lend you that money for the apartment- so you'll have to buy the apartment in cash
What do you believe the alternative is to making it worth the landlords while and them making a profit for their trouble?
I mean, you’re looking at spots where everyone wants to live. If people just sacrificed a little bit more and moved further out, you can get a whole house for $500. It would obviously take longer getting to work by train etc but you wouldn’t be living in 10m2 house. Who would have thought the demand for a place in the middle of the city would have so many applicants 😅
Just to let you know banks require a 30% deposit on apartments if you want to buy.
There are a number of things the government could do to improve the situation but instead they are making 'announce-ables' which are policies designed to make it look like they are doing something but have zero chance of making a real impact. Which is why I wouldn't waste time hoping the government will fix anything because I honestly don't think they want to..
Rent is overpriced in the CBD compared to the suburbs!!! Who would have thunk?
6:20 yeah I didn't get this either until you have to think of all the issues that a owner needs to face. I.e. still have to pay strata fees, property fees, and then any repairs (both to the individual unit or the whole building).
Overall, while it isn't really worthwhile to rent an apartment, it definitely is a bigger liability to buy an apartment if it turns out to be a crap build and you now have to pay tens of thousands in strat fees a quarter
100 percent I was just speaking to this. Its becoming very noticeable the outer suburbs becoming more dense yet closer to the cities remain large beautiful big homes. Seems pretty crook to me.
My frustrations mean nothing. That window where houses were cheap in Australian cities is gone. Welcome to the age of apartment living.
I think it's poor to say "I wish the government would do something about it".
What we need is people saying " I wish the government would do _____ so then people have affordable and better quality standards if living"
The purchasing power in Australia is also currently higher than in the US and UK! :)
the little walk around rocket park in hawthorn tripped me out at the end... im paying 360pw for a 1br like a 5min walk from there
People like to blame migrants for the housing situation. The truth is 90% of the student visa / working holiday people I know live in these conditions.
The problem is the Australian government, and their utter unwillingness to do anything REAL about the situation.
Housing in australia has a speculation problem, in which investment driven owners own a significant % of the housing, which in turn increases the prices of housing due to speculation. Furthermore, the tax incentives that exist in Australia are very UNIQUE to Australia, nowhere in the world will you find such a tax haven for housing. It is SAFER and MORE PROFITABLE to buy a bunch of houses than to actually buy stocks or investing your money in business.
Kick out all the migrants you want, the problem will continue to exist because at the root, they are not the cause. The fact that housing is an investment and not a place to live is the problem in Australia.
I rent to a family member and we discovered that to qualify for negative gearing, you have to charge market rate, whether you want to or not. I know the majority are just scumbags but a lot of the time you can't charge a reasonable amount without huge tax penalties. Fault in the laws.
Location Location Location that's where you start to save the $. I live SE Melbourne (approx 80KM away) I pay $288 / week Mortgage like you posted for a 2 Bdr 200 square meter detached unit . I can walk to a VLine bus terminal that takes me directly to Spencer street station in Melbourne. Living further out while it costs you time it saves on $ and driving stress, plus I'll own my home at cheaper than Rental prices.