Investors, you are the driving force behind a thriving housing market! In these challenging times, we want to provide you with information that is approachable, friendly, and informative. So let’s dive in! How to navigate the housing crisis…
The Impact of Rental Reforms:
Recently, the Real Estate Institute of Queensland (REIQ) conducted a survey shedding light on the concerns of property investors who are navigating the housing crisis. The findings revealed that 62 percent of investors have considered selling their rental properties in the past two years, with 27 percent attributing their decision to rental law reforms.
Understanding Rental Reforms:
To give you a quick recap, the Queensland Government passed legislation earlier this year aimed at limiting the frequency of rent increases to once every 12 months, starting from July 1. Additionally, they opened up community consultation for Stage 2 rental reform laws. These proposed changes encompass various aspects such as installing modifications, making minor personalization changes, balancing privacy and access, improving the rental bond process, and promoting fairer fees and charges.
Balancing the Equation:
While it’s crucial to protect tenants’ rights, it’s equally important to ensure fairness for property investors. Some investors feel that the reforms are tilted in favour of tenants, eroding their confidence in the government. It’s worth noting that the current regulatory framework already safeguards tenants’ rights. Imposing changes that come at the expense of one group to empower another seems unjust and counterproductive, potentially leading to increased rental stress.
Eliminating US vs Them:
Rather than perpetuating a divisive mentality, it’s time to bridge the gap. Property investors already contribute more through taxes and fees compared to other community members, aiming to achieve the same outcome. This lopsided approach lacks justice and fairness. The REIQ data further highlights that a significant 75.6 percent of investors in Queensland claim that the current rent they charge doesn’t cover their property-holding expenses, even after implementing rental increases. This situation is forcing some investors, particularly those without a structured plan, to exit the market.
Addressing Core Issues:
Multiple levels of government have inadvertently contributed to the housing under-supply. Unfortunately, they are now attempting to solve the issue with demand-side solutions instead
of addressing the root causes. This approach tends to create more problems instead of solving them.
Adopting and Investor Strategy:
In the face of changing circumstances, whether caused by a global pandemic or policy changes, having a robust property strategy is more important than ever. A well crafted strategy allows investors to weather the storm and adapt to new opportunities that arise from rental reforms.
Embracing Opportunities:
Let’s remember that the demand for rental properties is increasing. Instead of rushing to sell due to rental reforms, it may be wiser to adapt our strategies to leverage the new opportunities that emerge. Amidst the constant bombardment of alarming headlines surrounding the “housing crisis,” there lies a silver lining: increased potential for you. While it’s unfortunate that certain individuals may face difficulties, it doesn’t imply that you have to endure the same fate. The media thrives on promoting pessimistic narratives, and while you have the option to succumb to it, let’s choose a different path and make the most the extraordinary real estate opportunity, recognizing it as the greatest real estate opportunity of our lifetime.
Navigating the housing crisis – Turning challenges into success
While higher rents and reduced vacancy rates may seem concerning for tenants, they can present opportunities for property investors with the right strategies in place. Being adaptive rather than reactive is key to achieving real success. It’s crucial to manage our reactions to negative stimuli and respond promptly to positive changes.
Taking Action:
If you have concerns about the proposed changes or are considering entering the world of property investment, reach out to us today for a friendly and obligation free chat. We’re here to help you make informed decisions and navigate these complex times and can help you navigate the housing crisis.
The Impact of Rental Reforms:
Recently, the Real Estate Institute of Queensland (REIQ) conducted a survey shedding light on the concerns of property investors who are navigating the housing crisis. The findings revealed that 62 percent of investors have considered selling their rental properties in the past two years, with 27 percent attributing their decision to rental law reforms.
Understanding Rental Reforms:
To give you a quick recap, the Queensland Government passed legislation earlier this year aimed at limiting the frequency of rent increases to once every 12 months, starting from July 1. Additionally, they opened up community consultation for Stage 2 rental reform laws. These proposed changes encompass various aspects such as installing modifications, making minor personalization changes, balancing privacy and access, improving the rental bond process, and promoting fairer fees and charges.
Balancing the Equation:
While it’s crucial to protect tenants’ rights, it’s equally important to ensure fairness for property investors. Some investors feel that the reforms are tilted in favour of tenants, eroding their confidence in the government. It’s worth noting that the current regulatory framework already safeguards tenants’ rights. Imposing changes that come at the expense of one group to empower another seems unjust and counterproductive, potentially leading to increased rental stress.
Eliminating US vs Them:
Rather than perpetuating a divisive mentality, it’s time to bridge the gap. Property investors already contribute more through taxes and fees compared to other community members, aiming to achieve the same outcome. This lopsided approach lacks justice and fairness. The REIQ data further highlights that a significant 75.6 percent of investors in Queensland claim that the current rent they charge doesn’t cover their property-holding expenses, even after implementing rental increases. This situation is forcing some investors, particularly those without a structured plan, to exit the market.
Addressing Core Issues:
Multiple levels of government have inadvertently contributed to the housing under-supply. Unfortunately, they are now attempting to solve the issue with demand-side solutions instead
of addressing the root causes. This approach tends to create more problems instead of solving them.
Adopting and Investor Strategy:
In the face of changing circumstances, whether caused by a global pandemic or policy changes, having a robust property strategy is more important than ever. A well crafted strategy allows investors to weather the storm and adapt to new opportunities that arise from rental reforms.
Embracing Opportunities:
Let’s remember that the demand for rental properties is increasing. Instead of rushing to sell due to rental reforms, it may be wiser to adapt our strategies to leverage the new opportunities that emerge. Amidst the constant bombardment of alarming headlines surrounding the “housing crisis,” there lies a silver lining: increased potential for you. While it’s unfortunate that certain individuals may face difficulties, it doesn’t imply that you have to endure the same fate. The media thrives on promoting pessimistic narratives, and while you have the option to succumb to it, let’s choose a different path and make the most the extraordinary real estate opportunity, recognizing it as the greatest real estate opportunity of our lifetime.
Turning Challenges Into Success:
While higher rents and reduced vacancy rates may seem concerning for tenants, they can present opportunities for property investors with the right strategies in place. Being adaptive rather than reactive is key to achieving real success. It’s crucial to manage our reactions to negative stimuli and respond promptly to positive changes.
Taking Action:
If you have concerns about the proposed changes or are considering entering the world of property investment, reach out to us today for a friendly and obligation free chat. We’re here to help you make informed decisions and navigate these complex times and can help you navigate the housing crisis.
