According to the Property Investors Council of Australia (PICA), landlords need government support to be able to help their tenants in the context of the COVID-19 pandemic.
Ben Kingsley, President of PICA, said that many homeowners are "ordinary Australians" who are also affected by the impact of the epidemic on the economy.
"Let's be clear – the owners understand the situation. The vast majority are working and average Australians who own only one rental property," said Kingsley.
However, he said that most of these owners may not be able to bear the cost of having reduced or no rental income while still having to pay the mortgage, taxes, repairs. and maintenance.
"State governments have been asked to establish programs to assist struggling tenants. As a leading body representing landlords, PICA welcomes the opportunity to participate in these discussions "said Kingsley.
Read also: Investors must be confident
PICA presented some of its suggested policies that would help homeowners in the midst of the epidemic. One of the recommendations is that the Australian Prudential Regulation Authority relax the lending guidelines, allowing investors to refinance on better terms.
Another possible change that will help homeowners is to align interest rates and finance charges of investors with those offered to homeowners. At the same time, banks should fully pass on the rate cuts made by the Reserve Bank of Australia, said PICA.
Investors should also be able to move their loans on an interest-only basis, which should have the same interest applied to principal and interest loans.
In addition, PICA said it was also essential that lenders grant interest-free repayment leave.
Investors could also benefit from tax relief for depreciation, which will allow them to deduct the actual depreciation remaining over the remaining life of an asset.
Kingsley said these measures were "good help" that could help homeowners pay rent losses.
"Real estate investors have already faced challenges in securing funding and losing their property rights through changes in state law. They simply are not in a position to be asked, yet once, to carry the load without help, "he said.
In addition, Kingsley stated that it would not be useful to accuse the owners of being "unfriendly" and "reluctant" to fulfill their role in providing safe accommodation.
"The silver lining of this current event is a greater general awareness that tenants and landlords must treat each other with mutual respect and help each other during difficult times," said Kingsley.
Ken Morrison, executive director of the Property Board, said in a previous statement that landowners need the support of the state and territory governments to help their tenants.
"State and territory governments should provide property tax breaks – legislated so that they are passed on to tenants – which could then help support struggling tenants." Property tax is usually the highest amount that tenants pay, so temporary relief would be helpful, "said Morrison.
Top suburbs:
fig wood
,
south brisbane
,
Gladesville
,
balga
,
albion
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in a property, it is important to make sure that you not only have the lowest rate available that you can get, but
Just fill in a few details here below and we will then arrange a local mortgage broker to contact you and determine the features or types of loans that are right for you. Needs. We will even help you with the paperwork. In addition, an appointment is free.
We value your privacy and treat all of your information seriously – you can check
our privacy policy here
