renters suffer as wannabe landlords default

bloody punters...

Only a stupid tax system allows mug punters to run the rental property market

http://www.news.com.au/money/mortgage-stress-hits-hundreds-of-tenants/story-e6frfmci-1225865767971

Mortgage stress hits hundreds of tenants

By Karen Collier, Herald Sun May 13, 2010 1:38am

HUNDREDS of renters are being booted out of homes as landlords default on loans.

Banks have been accused of breaking eviction laws by forcing some tenants out too soon.

Some renters are getting just a fortnight's notice to shift and find a new roof over their heads - less than half the legal time limit.

Tenants Union of Victoria spokesman Toby Archer said renters were the forgotten victims of mortgage stress and rising interest rates.

"They are caught in the crossfire when a landlord defaults either because they've lost their job or entered the property market and taken too much on," Mr Archer said.

The Tenants Union has approached banks and other financial institutions over dozens of alleged illegal eviction notices in the past year.

Most renters are given extra time to vacate once the issue is raised.

Mr Archer said some banks claimed they were unaware the seized property was rented, while others deliberately bullied tenants out early.

"We think this is just the tip of the iceberg as most people don't understand their rights," he said.

"A financial institution's sole motivation is to recoup their money but they need to ensure the person least to blame is not treated harshly."

Under Victorian law, renters must be given at least 28 days notice to leave a property if a landlord has defaulted.

Mr Archer said the time frame was ludicrous, and has appealed to the State Government to extend it to at least 90 days.

One renter recently forced to quickly move from his Southbank apartment just seven months into his lease is now paying double at another property until he finds something more permanent.

The man, who asked not to be named, has also applied to VCAT to get his $3120 bond back.

The Herald Sun this month revealed fears that 90,000 recent first home buyers across Australia suffering mortgage stress could be forced to sell their homes because interest rates have risen more quickly than they expected.