Australian Politics Forum - The Greens Rent Freeze Plan

whiteknight

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The Greens Rent Freeze Plan
Dec 9^th, 2022 at 12:17pm

GREENS RENT FREEZE PLAN COULD’VE SAVED RENTERS ALMOST $5,000 EACH LAST YEAR
2022-12-06
greens.org.au
Updated analysis by the Parliamentary Library estimates that renters across Australia would be $10.7 billion better off if rents had been frozen nationwide for the past 12 months. With rents having increased by 21.5% nationwide, the average renter in Australia is paying $4,896 more for their home than last year.

The impact of a rent freeze varies by state. Sydney renters, who’ve seen their rents increase 28.6% in the last 12 months, would’ve been $7,450 better off on average had a rent freeze been in place. Melbourne renters, who’ve faced a 23.9% increase in the last 12 months, would’ve been $5,219 better off, and Brisbane renters, who’ve seen a 24% rent increase, would’ve been $5,104 better off had rents been frozen.

The Greens are calling on the Federal Government to put a nationwide two-year rent freeze on the agenda for this week’s National Cabinet meeting, as part of national tenancy standards including an end to no grounds evictions and minimum standards for rental properties.

Lines attributable to Max Chandler-Mather MP, Greens spokesperson for Housing and Homelessness:

The average renter would have nearly $5,000 more in their pockets this Christmas if the government had frozen rent increases over the last 12 months.

$5,000 could be a holiday and some great Christmas presents for the kids, or it could pay those outstanding bills, and instead it has been eaten up by unfair rent increases.

Over the last 12 months, renters paid an extra $10 billion in rent, while property investors pocketed $8.5 billion in federal tax concessions, which is desperately unfair and a reminder that right now politics really only works for the rich.

The Prime Minister needs to put a nationwide rent freeze and end to no grounds evictions on the agenda at this week’s National Cabinet meeting, and give the millions of people struggling with outrageous rent increases much needed certainty and relief.

If the Prime Minister doesn’t put a national rent freeze and an end to no-grounds evictions on the table at the National Cabinet meeting this week, then this will be a spectacular failure of leadership in the middle of the worst rental crisis in our recent history.

The Federal Budget has projected that over the next two years real wages will continue to decline while rents skyrocket and let’s be real, that will see Australia lurch into a major social crisis, unless Labor finally shows some leadership and freezes rents.

An emergency rent freeze worked in Victoria during the pandemic and it can work now across Australia to protect families from unfair rent increases that will either push them into devastating financial stress or even homelessness.

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whiteknight Gold Member Offline Australian Politics Posts: 8029 melbourne Gender:	Re: The Greens Rent Freeze Plan Reply #1 - Dec 9^th, 2022 at 12:19pm Yet again another good idea from the Australian Greens.
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Grappler Truth Teller Feller Gold Member Offline Australian Politics Posts: 83842 Proud pre-1850's NO Voter Gender:	Re: The Greens Rent Freeze Plan Reply #2 - Dec 9^th, 2022 at 6:44pm This'll be good in a time of rising interest rates on mortgages - the investors might take a hit for a change instead of the cream. Long overdue!! Sophia - might be some good buys coming on the market soon...
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Carl D

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Re: The Greens Rent Freeze Plan
Reply #3 - Dec 9^th, 2022 at 7:00pm

A two year rent freeze might be a good idea for renters until the two years are up and then the majority of landlords will probably increase their rents by an astronomical amount to cover their "losses" during the two year freeze.

No prizes for guessing what will happen to all those who can't afford the rent increases when that happens.

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« Last Edit: Dec 9^th, 2022 at 8:08pm by Carl D »

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Jasin Gold Member Offline Posts: 47448 Gender:	Re: The Greens Rent Freeze Plan Reply #4 - Dec 9^th, 2022 at 7:03pm I'm sure many a woman would pay her land lord in her own special way. Happened quite a lot in America during the Great Depression. A Land Lord would have his Apartment Block as his Harem.
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freediver Gold Member Offline www.ozpolitic.com Posts: 48834 At my desk.	Re: The Greens Rent Freeze Plan Reply #5 - Dec 10^th, 2022 at 8:43am Rent caps in New York are often used by economists as a good example of naïve economic policy backfiring and having the opposite effect to that intended.
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Captain Nemo Gold Member Offline Australian Politics Posts: 9926 Melbourne Gender:	Re: The Greens Rent Freeze Plan Reply #6 - Dec 10^th, 2022 at 9:30am A rental freeze could cause more home buyers to default on their home loans which would not be great for the overall economy.
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whiteknight

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Re: The Greens Rent Freeze Plan
Reply #7 - Dec 30^th, 2022 at 5:41pm

NSW LIBERAL NATIONAL GOVERNMENT BLOCKS GREENS RENT FREEZE BILL
2022-12-21
greens.org.au
In NSW Parliament the Liberals and Nationals have blocked a move by the Greens to introduce a Rent Freeze Bill just days before Christmas.

Jenny Leong MP, NSW Greens Housing and Renters spokesperson, had moved to urgently freeze rents when the NSW parliament was recalled today to pass energy price caps in order to provide additional financial relief to the millions of renters in NSW.

“The Greens had sought to put immediate measures in place to freeze rents in NSW for two years to provide renters with urgent relief from ever-surging housing costs,” Jenny Leong MP said.

“In the past weeks, we have seen that it is possible for the Federal and State governments to come together and act to cap energy costs - and this shows it is absolutely possible for them to do the same when it comes to rents."

“Our Bill sought to prohibit rent increases for two years and act as an immediate relief for renters who are fearful of finding themselves on the receiving end of a massive rent hike just before Christmas."

“It’s clear the Liberals and Nationals are more committed to big developers and investors than they are to the people of NSW." Sad

“It's disappointing that NSW Labor indicated that they didn’t support freezing rents, especially after last month when they voted with the Liberal/ National government to block the Greens Bill and end unfair evictions."

“While providing relief to people by reducing energy costs is welcome, we know that housing costs are by far the biggest item in everyone’s household budget."

“The average NSW household spends a massive 22.4% of their weekly budget on housing costs, meanwhile 1.9% on average is spent on energy - rent and housing expenses rank as the highest in terms of expense related stress."

“Given this, it seems the reluctance to back our rent freeze by the Liberals and Nationals has more to do with their desire to continue to give special treatment to developers and big investors." Sad

“The Greens at a state and national level are calling for a rent freeze because we know that it is one of the most significant causes of stress to so many people,” Ms Leong said."

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Gordon Gold Member Offline Australian Politics Posts: 20499 Gordon Gender:	Re: The Greens Rent Freeze Plan Reply #8 - Dec 30^th, 2022 at 6:04pm I wonder what other examples were the Govt should mandate that the full cost of the product can't be passed on to the purchaser?
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Grappler Truth Teller Feller

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Re: The Greens Rent Freeze Plan
Reply #9 - Dec 30^th, 2022 at 11:43pm

Well - maybe the entire housing market needs to be re-structured..... it's not working in any way at the moment.... investment is not producing the goods proclaimed so loudly - negative gearing applies to every business that incurs a genuine loss - but when the intent is to make a loss... well .... and concessional capital gains has also failed to produce the goods.

As THE major cost of living - how come I'm not hearing from learned economists how it will destroy the economy and cost billions?

Apparently it's only wage rises to alleviate the impending poverty of those working for a living that do that......

Time for some major changes - the vultures have had their pieces of cake - now it's their time to suffer.

Damn - that large sailing boat and that lovely plot in The Azores are looking good.... far from the truly madding crowds.... free of the insanity that dwells onshore ......

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“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
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freediver Gold Member Offline www.ozpolitic.com Posts: 48834 At my desk.	Re: The Greens Rent Freeze Plan Reply #10 - Dec 31^st, 2022 at 5:38am In what sense is it not working?
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Sophia

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Re: The Greens Rent Freeze Plan
Reply #11 - Dec 31^st, 2022 at 6:59am

Grappler Truth Teller Feller wrote on Dec 9^th, 2022 at 6:44pm:

This'll be good in a time of rising interest rates on mortgages - the investors might take a hit for a change instead of the cream.

Long overdue!!

Sophia - might be some good buys coming on the market soon...

I just saw this topic… maybe you’re right… there’s more interest rate rises on the way for 2023.
Would be nice to get our downsizer in the peninsula area… but alas the prices are still hefty and selling like hotcakes.

As for rent freezing… that’s all well and good… but how about interest rates/council rates/insurance/repairs freeze also?
It goes hand in hand.
Otherwise what’s happening I hear…. Renters are in bidding wars for the very few available rents around.
Investors are getting cold feet and either not buying or selling what they have at the current high prices.
This is what causes rent shortage.

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issuevoter Gold Member Offline Australian Politics Posts: 9200 The Great State of Mind Gender:	Re: The Greens Rent Freeze Plan Reply #12 - Dec 31^st, 2022 at 8:50am Government stipulated prices don't have a history of long-term benefits. In some extremes its called communism. That is why it will be supported by people who don't own anything. Sarcasm deleted.
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Frank

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Re: The Greens Rent Freeze Plan
Reply #13 - Jan 4^th, 2023 at 5:03pm

Sophia wrote on Dec 31^st, 2022 at 6:59am:

Grappler Truth Teller Feller wrote on Dec 9^th, 2022 at 6:44pm:

This'll be good in a time of rising interest rates on mortgages - the investors might take a hit for a change instead of the cream.

Long overdue!!

Sophia - might be some good buys coming on the market soon...

I just saw this topic… maybe you’re right… there’s more interest rate rises on the way for 2023.
Would be nice to get our downsizer in the peninsula area… but alas the prices are still hefty and selling like hotcakes.

As for rent freezing… that’s all well and good… but how about interest rates/council rates/insurance/repairs freeze also?
It goes hand in hand.
Otherwise what’s happening I hear…. Renters are in bidding wars for the very few available rents around.
Investors are getting cold feet and either not buying or selling what they have at the current high prices.
This is what causes rent shortage.

Mortgage stress has some Australians bracing for a new year of budget pain

https://amp.abc.net.au/article/101754182

Mobaraka Mohammadi says she works 12 hours a day just to make ends meet and pay off her mortgage.

Mortgage broker Gracious Chidhakwa told the ABC some households had already started missing their repayments, and she warned the full effect of the rate rises would not be felt for some time yet.

Ali Kawser, mortgage broker and owner of AK Home Loans based in the west of Melbourne, told the ABC that some aspiring home owners who secured house and land packages last year did not want to proceed.

David Lin is anxiously watching Australia's mortgage rate rises and considering whether he will have to take up another job soon.

Mr Lin, a Melburnian in his 30s, had his mortgage rate fixed before the pandemic but that will expire next year, meaning if rates stay where they are, he could be forced to pay an extra $300 to $400 every month.

Founder and chief executive of Financially Empowered, Grace Mugabe, said the cost of living crisis and rising interest rates were hitting most people hard, particularly culturally and linguistically diverse (CALD) Australians and migrants.

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freediver Gold Member Offline www.ozpolitic.com Posts: 48834 At my desk.	Re: The Greens Rent Freeze Plan Reply #14 - Jan 4^th, 2023 at 5:07pm If there is a shortage of rental properties due to government price control, guess which demographic will be the first to become homeless?
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