Fixing the rental crisis
Everybody should have a roof over their head
How is it that with a country like Australia and as rich as it is, there are still people living on the street? There are also people lucky enough to have a roof over their head but unlucky enough to have to choose between, rent, electricity and food because of the ridiculously high costs..
So how do we fix this?
We have already covered half of this issue on the home ownership page, see:
Home ownership link
We cannot discount that other older or more affluent Australian are trying to prepare for their future too, and no matter how much we view the high rents as greed and lacking empathy, we need to do our best not to disadvantage anyone in our community.
1.Tax incentives and disincentives.
Tax should be used in a carrot and stick approach. A formulae needs to be created for how rental income and prices can be set. If the rent considered in conjunction with any debt, management and maintenance costs and reasonable returns is within a selected bracket, then tax concessions and incentives are available. On the other hand, if rents are excessive in comparison to these costs and a reasonable return, then tax disincentives will be applied to severely blunt any rent gouging
Note also that rents will now fall under the scrutiny of the "Critical resources authority" and if landlords cannot manage themselves then the authority will recommend further tightening of controls to the government. if possible we will empower the authority to be able to apply these themselves. Legislation will be necessary although we will require a majority in both houses.
2. A property cannot be left vacant for more than 6 months
This isn't an everyone problem, however, it seems that some investors both overseas and local believe leaving properties vacant will increase their value. Unfortunately, they are correct although the value increase is purely artificial.
This practise of artificially boosting house and rent prices by creating a property drought must be examined and solved.
The first step is to complete legislation (in conjunction with State governments) to outlaw the practise and apply significant tax penalties if it occurs. Oversight is a problem for this issue although enough bright minds will be able to form a solution.
Note that there will be the ability to apply for an exemption on providing a reasonable explanation as to why it is occurring and providing proof as such.
