The NSW government’s decision to
extend its rental moratorium has been hit with criticism, with flow-on effects
set to severely impact mum and dad investors.
The Real Estate
Institute of NSW (REINSW) is calling for an urgent review of the state governments decision to extend the rental moratorium, noting that
the government’s "failure” to explain the rationale is a "critical
The REINSW suggested
the timing couldn’t have been worse, as it coincides with the end of the
banks’ loan repayment waiver. It also comes at a time of ease restrictions in NSW, as well as the recent decrease in the national
unemployment rate to 6.8 percent, the REINSW said.
executive Tim McKibbin said, "Contrary to the NSW government’s obvious
stereotyping, around 80 percent of landlords in New South Wales are mums
and dads or self-funded retirees who are either paying off a single
property investment or [depending] on it for income.”
This extension will
essentially"create a perfect storm and send many mums, dads, and retirees
broke”, the CEO added.
"This is a case of
logic being ignored, livelihoods being placed at unnecessary risk and,
worryingly,a refusal to undertake the proper consultation.
"How are these mum
and dad investors, many who have lost their jobs, going to cope? The banks
have already made clear that the cold hard reality for many landlords is that
they are going to have to sell their property to retire debt. The nest egg
people have worked so hard to achieve, and have sacrificed so much for,
will be lost.
"The Department of
Fair Trading has informed the REINSW clearly that if even if a landlord has
lost their job,if the hot water system breaks on their property, they
have to find the money from somewhere to fix it.”
Mr. McKibbin said it
is "grossly insulting” for the minister to assert that the extension
of the rental moratorium is in support of both tenants and landlords
"To date, the
government has provided the Tenants Union $13.5 million to assist
tenants. Not one cent has been provided to assist landlords. It undermines
the absolutely critical role landlords play in society: providing choices
for people to have a roof over their heads,” he said.
"In the end, tenants
will suffer, too. Fewer properties available for rent at this incredibly delicate economic time pushes more people onto the streets.”
In conclusion, Mr
McKibbin said the REINSWhasrepeatedly sough to consult with both
the department of Fair Trading and the minister "to explain the impacts of this measure on the state’s landlords and tenants, but our
efforts, despite the promises made, have been met with a closed-door”.
"Instead, the state’s
largest real estate industry body, like the rest of the community, is left to
process the recklessness of a decision made with no industry consultation,
no basis in data and with clearly no understanding of the broader industry and
market ramifications,” he said.
"We expected better
from the NSW government.”
The comments from Mr
McKibbin and the REINSW follow the Real Estate Institute of Victoria and Real Estate Institute of Western Australia slamming
their state governments over similar moves.
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Tuesday, 29 September 2020