Dangerous Dan Andrews who single handedly has sent Victoria broke has still no finished his Socialist destruction
Victorians, once again you have been warned of your continued misguided love affair with your Socialist Labor Premier, Chairman Dan
https://www.realestate.com.au/news/housing-crisis-rent-freeze-raises-risk-of-200000plus-home-sales-as-landlords-evict-themselves-from-victorian-market/?campaignType=external&campaignChannel=syndication&campaignName=ncacont&campaignContent=&campaignSource=herald_sun&campaignPlacement=spa
A two-year rent freeze could be the final straw in a Victorian landlord exodus that would lead to the sale of more than 212,000 investment properties.
The suggestion to bar landlords from raising rents more than once every two years was one of several housing and rental affordability measures Premier Daniel Andrews said were being considered by the government over the weekend.
The property industry has widely welcomed efforts to encourage more housing construction, but the head of one Australia’s biggest real estate firms has warned he fears rental homes would be lost from the market as a result of limiting scope for rent increases beyond the current one year timeline.
First National Real Estate chief executive Ray Ellis said he feared a 30 per cent reduction in rental supply “at a minimum” if the additional burden was placed on landlords who were already considering exiting after land tax cost rises, interest rate hikes and changes to the Residential Tenancies Act in Victoria made in 2021.Latest Residential Tenancy Bond Authority figures show they held bonds for 706,892 homes at the end of the 2021-2022 financial year.
A 30 per cent cut would wipe 212,067 of them from the market.
In Victoria last week PropTrack figures show more than 230 of the homes taken to auction (34.5 per cent) were former rental homes.
It was well above the 29 per cent national average for investment homes being sold.
PropTrack economist Angus Moore said international examples showed rent controls could result in rental home maintenance suffering and in landlords exiting the market.
Mr Moore said there was also a possibility that landlords would compensate for fewer opportunities to raise rents with sharper increases when they could.
“Creating more supply is fundamentally the only way to solve this problem long term and in a sustainable way,” Mr Moore said.
Mr Ellis, a member of the International Real Estate Federation (FIABCI), also recently reviewed international rental interventions including in Paris, where in 2015 landlords were barred from raising rents above a specified index and chose to sell instead — leading to the program being axed two years after being implemented.
In Berlin, a five-year rent freeze implemented in 2020 ended a year later after a legal challenge. A study there indicated an up to 60 per cent reduction in rental listings, in part as landlords left homes untenanted while they awaited the outcome at court.
Co-founder of The Demographics Group in Australia Simon Kuestenmacher said the government risked overwhelming market forces with too much intervention.
