Property investors want their own version of JobKeeper coronavirus stimulus, page-4

  1. 8,536 Posts.
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    The smartest and most cost effective measure the govt can do is guarantee the rental short fall.

    This is what I would do if I were the govt:
    • Tenant discusses their situation with the landlord
    • Landlord re-assesses the market and potentially reduces the rent depending on the area demand
    • Tenant pays as much as they can reasonably afford on the new unemployment benefits - for a couple they should be able to manage around $300 to $400 per week
    • The difference in rent from what is paid to the actual rent is accumulated as a debt to be paid later that is guaranteed by the govt
    • Landlord gets a payment holiday from the bank if necessary
    • When things return to normal
    • landlord returns to fully paying their adjusted mortgage,
    • tenant pays their full rent along with extra as part of a payment plan
    • if tenant defaults on their payment plan obligation the govt pays the outstanding rent and chases the tenant for the money

    The above is both fair and cost effective for the govt and would help stabilise the market. Though I am sure there will be some level of extra rental assistance thrown in there as well.
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