01/12/2018
Earlier this year, after a long period of consultation and debate within the community, the New South Wales government welcomed the short-term rental reforms. This is due to the growing growth of online home sharing platforms around the world.
The new planning framework will clarify the regulation of leasing in the short term, designating the practice as an exempt development. Guests must now adhere to a range of new rules, including the 180-day limit for short-term rental of a property in Greater Sydney when the host is not present.
The economy of shares shows how far consumers and technology are ahead of regulation. Regulating the sharing economy – be it home, taxis, or labor – has been a notorious challenge for governments. But despite the wide range of opinions on this topic, I am confident on one point: the sharing economy will not go away.
We need to find a way for online disrupters to participate legally in our economy because they add competition, dynamism and innovation. Although regulation is sometimes necessary, we can be sure that the technology developed by entrepreneurs will far outweigh the imagination of our politicians.
The sharing of the house in particular has been a boon for some regional communities. The wealth generated has helped put money in the pockets of local households. It is partly for this reason that the government was eager to integrate the sharing economy by developing a set of regulations allowing companies to continue to innovate while respecting certain basic rules.
NSW government reforms are not a blank check for the colocation industry, as all of its activities have been limited. The reality of monitoring and enforcing the 180-day limit seems particularly difficult.
The reforms also allow buildings to ban short-term rental, which may be disputed by those who believe that their property rights have been ignored. Overall, the approach to compliance and enforcement remains to be seen.
Sharing the house is a policy area that has taken governments around the world by surprise, with some jurisdictions severely repressing, others adopting a laissez-faire policy and even more jurisdictions having no clear policy at all.
Policy certainty is one of the most important factors upon which successful economies rely. We need logical and consistent rules that promote the spirit of business while respecting the concerns of the community.
The new rules of NSW provide this certainty, allowing the sharing of the house to continue to develop and innovate. However, the property industry is such an important employer and contributor to our country's wealth that it must remain vigilant so that regulation does not hinder economic development and entrepreneurship. For this reason, we are committed to working with the government to ensure that regulation is fair and appropriate for the sector.
Selina Short
is the managing partner of Oceania
real estate and construction
at EY Australia.
Can you afford to buy in this suburb? Find out how much you can borrow
Top suburbs:
alexandria
,
West Rockhampton
,
rooted hill
,
the basin
,
Harris Park
Get help for your real estate investment
Need help finding the right loan for your investment?
When you invest in real estate, it's important to make sure that you do not just have the lowest available rate that you can get, but you also have the features of ready adapted to your needs.
Just fill in a few details below and we will then make arrangements with a local Australian mortgage broker to contact you and fix the problem What features or types of loans are suitable for your needs? We will even help with the paperwork. In addition, an appointment is free.
We value your privacy and treat all your information seriously – you can check
our privacy policy here
