As federal and state governments implement measures to support the economy and the housing market, real estate investors appear to be being ignored and excluded, expert says.
Mike Mortlock, managing director of MCG Quantity Surveyors, said the lack of support for real estate investors could potentially hurt the housing market and the economy.
"We don't want to discourage people from investing in residential real estate, but that's exactly what happened during this pandemic," he said in a recent think tank.
Mortlock said "disproportionate" support was given to tenants early in the crisis in the form of a moratorium on evictions and rent increases, all to the detriment of landlords.
"The vast majority of investors came together and did what they could – cut rents or defer tenant debts," he said. “The banks got the help of the six-month repayment holiday for borrowers, but it was not free money.”
Real estate investors have also been excluded from programs that aim to stimulate activity in the housing market. The HomeBuilder program, for example, only applied to homeowners. Mortlock said this was a "missed opportunity" to boost investor activity.
"Investors will complete renovations and maintenance of their assets, so any help to encourage this would have been ideal. Not only would it have supported construction, but it would have benefited tenants with lots of new equipment, fixtures and fittings. and finishes added to rentals, ”he said.
Data from the Australian Bureau of Statistics (ABS) shows that most Australian investors need support as much as homeowners, Mortlock said.
In fact, of the 2.1 million real estate investors in Australia, 1.5 million own only one investment property.
"This means that about 90% of all investors have modest holdings. They are not very wealthy individuals. They are mum and dad level owners who are just looking to move on from the bank. before and to plan for their retirement, ”he said. ]
Western Australia is a state already feeling the effects of the lack of investor support.
According to the Real Estate Institute of Western Australia (REIWA), Perth's rental market has officially entered a slump, with its vacancy rate falling to its lowest level in 13 years.
"Western Australia has about 17% of properties bought by investors, whereas we would normally expect to see investors buying 30% or more of available properties. At the same time, investors are always leaving the market, which means that the supply of rental properties is not sufficient to meet demand, ”said Damian Collins, president of REIWA.
Top suburbs:
Bligh park
,
homebush
,
werribee
,
tank
,
the tweed is heading south
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in real estate, it is important to ensure that you not only have the lowest available rate possible, but also have the right loan features for your needs. needs.
You only need to fill in a few details below and we will then arrange for a local mortgage broker to contact you and determine the characteristics or types of loans that suit your needs. We'll even help you with the paperwork. In addition, an appointment is free.
We value your privacy and take all your information seriously – you can check
our privacy policy here
