The Federal Government\u2019s latest thought bubble to propose national caps on rent increases to once every two years is economic lunacy, according to the Real Estate Institute of Queensland (REIQ). REIQ CEO Antonia Mercorella said it was imperative that state and territory governments weighed up the strain on both sides of the rental ledger and considered the broader economic context at the National Cabinet meeting in Brisbane next week.<\/p>\n\n\n\n
\u201cWe understand the community concern about rents rising at a much faster pace than we have historically experienced,\u201d Ms Mercorella said.<\/p>\n\n\n\n
\u201cIn the decade prior to the pandemic, when we had healthier levels of supply, we all grew accustomed to gradual increases in rent, with the data showing periods of stagnant rates.<\/p>\n\n\n\n
\u201cThe REIQ would caution governments against introducing rash restrictions in reaction to the highly extraordinary set of circumstances we\u2019re experiencing post-pandemic.<\/p>\n\n\n\n
\u201cThe issue is underpinned by gross undersupply, so it\u2019s counterproductive and dangerous to restrict the rights of those providing the vast majority of rental supply.<\/p>\n\n\n\n
\u201cA two-year cap on rent increases would significantly limit property owner\u2019s ability to recoup rising holding costs and potentially makes keeping the property unsustainable.<\/p>\n\n\n\n
\u201cMany assume that because rents are going up, investors are \u201cexploiting\u201d the market, but the reality is property ownership costs are growing at a much faster pace than rents.<\/p>\n\n\n\n
\u201cIt\u2019s disappointing when Governments seem to have no understanding of the commercial realities of holding an investment property and the shaky ground that the typical mum and dad investor mindset rests upon.\u201d<\/p>\n\n\n\n
Ms Mercorella said while the critical undersupply won\u2019t be solved overnight, the data was demonstrating that rent increases are coming off the boil and beginning to stabilise.<\/p>\n\n\n\n
\u201cThis would indicate that it\u2019s not the time to act recklessly and risk driving away property investment, reducing rental supply, and stifling housing development that caters to investors and relies on their interest to get off the ground,\u201d she said.<\/p>\n\n\n\n
Ms Mercorella said legislative intervention and reform had been on a slippery slope in Queensland, with the state\u2019s rent increase frequency already revised and capped to once yearly, just one month ago.<\/p>\n\n\n\n
\u201cWe\u2019ve already seen the fallout from rushed and ill-considered policy,\u201d she said.<\/p>\n\n\n\n
\u201cNow the National Cabinet has inexplicably stepped in on this issue but has stopped short of dictating national rental policy because it\u2019s simply not in their wheelhouse.<\/p>\n\n\n\n
\u201cUltimately, it is up to state and territory governments to decide and we trust they can see this is a veiled attempt from the Federal Government to appease the Greens and distract from the blocked housing fund.\u201d<\/p>\n\n\n\n
This article was contributed by REIQ.<\/p>\n\n\n\n
You can find more information at: http:\/\/reiq.com.au<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The Federal Government\u2019s latest thought bubble to propose national caps on rent increases to once every two years is economic lunacy, according to the Real Estate Institute of Queensland (REIQ). REIQ CEO Antonia Mercorella said it was imperative that state and territory governments weighed up the strain on both sides of the rental ledger and considered the broader economic context at the National Cabinet meeting in Brisbane next week. \u201cWe understand the community concern about rents rising at a much faster pace than we have historically experienced,\u201d Ms Mercorella said. \u201cIn the decade prior to the pandemic, when we had healthier levels of supply, weRead More →<\/a><\/p>\n","protected":false},"author":1279,"featured_media":3876,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_mbp_gutenberg_autopost":false,"footnotes":""},"categories":[7,6,29,53,4],"tags":[],"class_list":["entry","post","publish","author-reiq","post-3875","format-standard","has-post-thumbnail","category-general-interest","category-landlords-tenants-renting-and-management","category-real-estate","category-reiq","category-the-management-rights-market"],"_links":{"self":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/3875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/users\/1279"}],"replies":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/comments?post=3875"}],"version-history":[{"count":1,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/3875\/revisions"}],"predecessor-version":[{"id":3877,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/3875\/revisions\/3877"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media\/3876"}],"wp:attachment":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media?parent=3875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/categories?post=3875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/tags?post=3875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}