Qld Rent Rise Restrictions Radio Interview - Jacob Carlile
New restrictions could be coming into play for landlords around rental price increases.
Our Property Manager & Director, Jacob Carlile, shared his thoughts with HIT FM and Triple M yesterday.
There has been a new rent rise restrictions around rental prices.
Our Director, and Property Manager, Jacob Carlile will be sharing his thoughts on the topic about limiting rent increases to once every twelve months.
The impact of this restriction to the market is significant. Affordability is definitely an issue seen across tenancies so it is definitely a problem that needs to be addressed.
The changes that have been proposed are at the detriment to Hot Property's investors which are already in dwindling numbers. Hot property have not seen the return to the investment market post pandemic so Jacob does not think it is a great thing to attract investors to Queensland, but it is certainly going to solve a short term problem in making housing more affordable, and not being able to increase the rent as much as our team have seen over the last twelve months.
Jacob has seen capital appreciation skyrocket over the last twelve to eighteen months so the value of homes and units are worth so much more, and because of fixed term agreements that were in places with tenants, there has been a lag between the property price increasing and then the rent lagging behind which is why our team had to adjust rents in line with the capital growth that properties have across Southeast Queensland.
He also mentioned that it is very difficult to encourage an investor to operate a rental property at the moment because of the latest legislation that was just pushed through and the changes made owners to have a say in their own investment property with regard to pets, or ending tenancies, which is sort of another blow to the poor old investor.
Additionally, investors are not multimillionaire oligarchs, they are mom and dads who are just trying to set up for their retirement. If owners are increasing ridiculous amounts, they're doing the wrong thing to begin with because a good tenant is worth their weight in gold.
Fortunately, 99.9% of Hot Property clients would want to look after their tenants and they appreciate the role that tenants have in their property, and without these tenants, no one pays the bills, the mortgage, and other expenses.
Over the last couple of months, Jacob has seen properties in the market under $400 per week. So it used to be 60% of properties in Toowoomba were under $400 per week but now it is just over 30% of the properties are under $400 per week. Whenever the government comes out and touches rental affordability, it is just going to make it more difficult in an already difficult market.
We're sitting at a 0.5% vacancy rate in the Toowoomba region which is incredibly low, and affordability is a real issue. But there's also ways around that our team have been implementing with clients which is if it's a young couple going out into their first rental property, the couple's parents may be guarantors just to aid the couple's affordability.
Our team has seen many people leaving their leases because they cannot afford the new rate but there's plenty of solutions out there and whether it is the right one or not, definitely time will tell.
As regards land tax concessions, the Queensland tax system is already just a massive revenue maker so any little attraction piece that the government can introduce to reintroduce housing supply into the market is going to be great for the market but it is not quite enough to get the supply back needed. It's great that they introduce a measure like that but it really has a twelve to eighteen months lag on actually hitting the market and those houses coming into play and helping the problem.
Overall, REIQ is excellent in their advocacy for real estate agents and for the wider market that we represent so they definitely are doing a great job.