Property Point

Like most young people, I lived in a rental property for some years before buying my first home.

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I had left home in Canberra and was living in Melbourne, initially in shared rental properties. It was a bit weird but there would be ads in the paper saying a room was available for a “guy/girl” and applications were invited.

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If you had a pulse and some form of income you got a room pretty quickly.

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Initially I was in various flats … we didn’t call them “apartments” or “units” in those days and the flats I lived in were cheap, unadorned, small and cold.

At one stage I was one of three young blokes in a two-bedroom flat in Clifton Hill. It was a ridiculous set-up made worse by the fact that one of them was an angry lunatic who wanted to fight people.

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I got out of there as quickly as possible. Soon after I vacated the flat and left the lunatic to his own devices, Clifton Hill was the scene of the tragic Hoddle St Massacre in which a gunman killed seven people. I assumed it was my former flat mate but it turned out there were two lunatics in Clifton Hill.

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There were other flats … Brunswick and St Kilda and a terrace house in Coburg. If you enjoy a cold climate you should try living in an old two-storey terrace house in Coburg with a malfunctioning fire place on a winter’s night.

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Later in my 20s I bought my own unit and my property journey became far more civilized and warmer. But the point is that I needed those rental properties. They were part of the journey when I needed cheap accommodation while at uni and starting off in a career at the lower end of the pay scale.

The current Federal Government needs to remember that for there to be rental properties there needs to be investors who bought them and who make them available for tenants.

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There is no doubt that the increasing housing prices had become ridiculous in cities like Sydney and prices have been increasing in recent years in regional Queensland as well. It’s a demand and supply thing … lots of people and not enough houses. Extremely high levels of immigration will do that.

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But the government, rather than looking at immigration numbers, has decided to bash the life out of investment opportunities for “mum and dad investors”. Negative gearing is gone, capital gains tax is up and, the latest one, people are now banned from borrowing money to buy an investment property through their self-managed superannuation.

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People who had a little bit of money tucked away used to be able to take out a loan and buy an investment property to help set them up in their retirement years. My wife and I bought a few several years ago and I thought at the time that it was a great opportunity for the average Joe, rather than the high end of town, which doesn’t need to buy through their super.

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Anyway, that’s gone and the government, in lock-step with the Greens, has pretty much stomped on any aspirational ideas ordinary people might have because there is now no incentive to try and create financial opportunities for mum and dad and the family unit.

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That’s great for the Greens and the socialist left who find beauty in the bland but not so good for people willing to work hard, make investments and try to get ahead while at the same time ensuring they are not a burden on the taxpayer in their later years.

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It’s also not so good for young people like me all those years ago needing a rental property. I don’t know who is going to buy an investment property so I don’t know how young students and people starting out are going to find a rental. And the lack of rentals will push rent prices up. Job done!

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