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Target exceeded! Anyone noticed their rent coming down?

By johnboy - 14 July 2008 18

Our brave leader has announced that the target for land release has been exceeded!

“I am pleased to announce the ACT Government has exceeded its residential land release target for 2007-08, by releasing 3,400 blocks of land,” Mr Stanhope said. “Increasing the supply of land is one of 62 initiatives in the ACT Government’s Affordable Housing Action Plan, which is helping more Canberrans access more affordable and appropriate housing.”

The plan is on target! this must be nearly as good as being Stalin without getting to shoot anyone.

Anyone noticing a reduction in rents around the place?

Government is not, however, completely joined up yet. We’re still spending up big to attract people to a city in need of a 62 point housing plan. Mr Stanhope has also announced that a whole 80 newcomers to Canberra are going to get a look at the AIS as part of the “Live in Canberra” program.

At what point do they just go on a tour like everyone else? Or take the salaries of the team spent organising these twice-monthly shindigs and just give it to them?

What’s Your opinion?


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18 Responses to
Target exceeded! Anyone noticed their rent coming down?
VYBerlinaV8_the_one_ 4:57 pm 14 Jul 08

I don’t use $15 as a flat figure. I make the decision based on a few factors, including:

1) What rent could I achieve if the property was currently vacant?
2) Has the tenant looked after the place and not caused me hassle?
3) What does the managing agent recommend?
4) What does the place rent for currently, and what percentage increase does the rent rise represent?

Typically I won’t charge what the market will bear if the tenant has paid on time and looked after the place (good tenants are valuable). For the rent raise I did a couple of weeks ago, the agent recommended $15, and if the property were empty I could probably get an extra $30-40 without much trouble. The tenant is very good, so I figured $15 seemed about fair, as the $15 is about a 4% increase, which is approximately in line with CPI. But it’s ultimately a subjective thing.

tylersmayhem 4:34 pm 14 Jul 08

Berlina, as a landlord what do you base your regular yearly increase of $15 a week ($780 odd per year) on as a matter of interest? And before answering, I do understand that it is your prerogative.

VYBerlinaV8_the_one_ 4:16 pm 14 Jul 08

In that case – absolutely.

johnboy 4:12 pm 14 Jul 08

VYBerlinaV8_the_one_they_all_copy said :

I’m guessing JB’s comment was directed at me. I figure that running rents a bit below market in exchange for good tenant behaviour is reasonable, and given I am the one carrying the exposure on owning the property, it’s my choice to make.

I meant the regular increases rather than the total amount.

johnboy 4:11 pm 14 Jul 08

VYBerlinaV8_the_one_they_all_copy said :

I would have thought targets wouldn’t mean too much in this area. The reality is that if people have to front a land ballot to try to get some land to build a home, that not enough land is being released.

Unfortunately it’s going to take a number of years for supply of usable dwellings to meet demand, simply because it takes so long to develop and build property (including ACTPLA dragging their heels…).

My suspicion would be that the target was set after checking what the planned release was going to be anyway.

Then wait a year and announce… *SUCCESS!!!*

Never mind what’s going on in the real world.

VYBerlinaV8_the_one_ 4:11 pm 14 Jul 08

I’m guessing JB’s comment was directed at me. I figure that running rents a bit below market in exchange for good tenant behaviour is reasonable, and given I am the one carrying the exposure on owning the property, it’s my choice to make.

VYBerlinaV8_the_one_ 4:08 pm 14 Jul 08

I would have thought targets wouldn’t mean too much in this area. The reality is that if people have to front a land ballot to try to get some land to build a home, that not enough land is being released.

Unfortunately it’s going to take a number of years for supply of usable dwellings to meet demand, simply because it takes so long to develop and build property (including ACTPLA dragging their heels…).

johnboy 4:07 pm 14 Jul 08

Cooking your frogs slowly eh?

VYBerlinaV8_the_one_ 4:06 pm 14 Jul 08

Just interested is all. I just increased rent on one of my properties by a similar amount (which is way less than market would bear, but the tenant is really good and I am trying to retain them as a client). I generally increase rent yearly in small but regular amounts, rather than leaving it (for say, 3 years) then hitting the tenant up for a big raise.

Thumper 2:33 pm 14 Jul 08

Was there really a target so to speak?

Or did they just make it up so as to sound as if they are doing something?

tylersmayhem 2:08 pm 14 Jul 08

Holt…why?

VYBerlinaV8_the_one_ 1:46 pm 14 Jul 08

Tylersmayhem – what suburb do you live in?

AngryHenry 1:24 pm 14 Jul 08

I can neither access or afford anything right now and I’m not the only one.

This town needs to pull its head out of its butt when it comes to real estate.

Those of us in the renting game trying to buy into the market are getting more and more screwed paying on average in excess of $400 dead money in rent every week. Those of us paying off homes are forced to sell because of increasing interest rates.

Affordable aschmordable!

I’m hearing about a plan but I’m not seeing any action!

tylersmayhem 1:21 pm 14 Jul 08

Nope, rent actually just went up by $15 a week!

jakez 1:06 pm 14 Jul 08

“Aim low. Aim so low that you can’t possibly be disappointed.” – Homer Simpson

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