I applied for a property for a rent via real estate agent. Real Estate agent increased the rental price since they have received so many applications I guess.
Do you know if I can complain to someone about that like Fair Trading?
Due to pandemic it is hard for everyone to pay extra but some real estate agents are becoming super greedy during this time.
@Emerald Owl: Every certificate of title ever issued.
A mortgage is listed on the title but this isn’t considered ownership. There is only certain circumstances a lender can step in which must be approved by a court.
Even when they do step in, they still aren’t considered the owner.
@Emerald Owl: https://couttslegal.com.au/blog/what-do-the-different-types-…
Torrens title
If there is a mortgage on the property, the mortgagee generally holds the Certificate of Title as security until the loan is paid. Your name as the owner will appear on the Certificate of Title but the mortgage will also be registered here to show the interest the mortgagee has in the property.
Nothing stopping the agent from increasing the rent based on the market.
Although under-quoting is a little bit of a grey area.
But yep, there's nothing you can do unless you keep bidding up the price.
What a load of garbage !
Seriously if you were in charge OP, what would you do if you were overloaded with inquiries?
Everyone that misses out is going to be upset including you OP.
Obviously the agent underestimated the rental value of the property and is entitled to re-advertise at a higher rent.
That's one way to reduce the inquiry level and people will just self exclude just like you did OP.
So at least it was your choice not to apply and not the agents choice to reject your application..
Surely you MUST feel better about this.
And all the poor landlords have copped this COVID19 on the chin
Everyone is being offered some sort of compensation except landlords
Even today on the news they are going over all the compensation payments people can apply for then suggest landlords should reduce their rents…….Seriously????
Well nobody has offered landlords any reduction in costs nor reduction in mortgage repayments nor any compensation.
How is that fair and equitable?
So if a landlord can get a little more rent (probably from a previously reduced rent due to COVID 19) then so be it.
That's about all they will be getting unfortunately.
Dear OP You are the one people should be complaining about with your expectation of such high entitlement and self indulgence,.
Yeah same with my shares when they dropped last year, copped it pretty hard, stupid government didn't repay me for my INVESTMENT
You're insufferable… You are the only one sounding entitled and selfish to be honest.
In all your posts all I read is "me" "me" "me" "poor me" get a grip..
You're a landlord just like a lot of people including myself. All I hear from you is whinging. Reassess your finances, sell your properties and get in control.
If you're feeling so stressed you need to rant on a forum about how much you dislike being a landlord or how much you hate tenants then get out of the game…. It's a prime time to do so.
No mate
Firstly there is not a single reference to "me"
So you got it wrong there
I'm just sick of landlord bashing
Everyone seems to thing landlords should pick up the tab for this COVID19 nightmare
They don't recognize that landlords are suffering just as much if not more than others
Meanwhile everyone else gets compensation of some sort
If you are a landlord then make a stand for landlords
Because everyone seems to miss the point
Please show me where people or the government are expecting landlords to pick up the tab? And what tab are you on about?
You do realise everyone is different right? Every council is different, utils etc etc …
I've had rebates from the council (without asking) and utils companies for COVID19 support, banks are .. somewhat helpful.
I just don't understand your animosity towards "everyone" and my honest opinion, get out if you feel that way.
Not a literal "me" …. gee whizz.
@athk: mate just listen to the news…..telling everyone to ask the landlord for a rent reduction
never mind that landlords have already reduced rents since last years COVID19 outbreak
never mind that vacancies are through the roof and landlords could be without a paying tenant for several months
never mind that property costs are up and up
yes some places are experiencing high demand but many inner city apartments are being smashed both in Sydney and Melbourne
If you are a landlord then make a stand for landlords
Yeah but I don't feel hard done by.. at all.. And I've spoken to many investors that don't either..
They don't recognize that landlords are suffering just as much if not more than others
That's the risk they took. If a landlords fall then who knows, maybe the people living inside could actually afford the house. If businesses fell on the other hand, it's a different story… Read through threads like these (multiple on OzBargain) and if you don't see understand why there's hatred for landlords (rightly or wrongly) then I'm not sure what to say.
Agreed, everytime this argument appears, its the landlord's who sound the most entitled.
I am looking for a new apartment to rent in Sydney.
Have been tryiing to move from a 1bdrm place to a 2bdrm one in the last month or two.
Anything in the Waterloo, Surry Hills, Kings Cross, Bondi Junction area that is livable and has 80sqm or more of internal space goes off like hotcakes.
I am currently paying $600/wk in the one bed and these 2 bed places are going for $850 - $1000 p/wk.
Best to stay and let the market forces cool themselves down.
You’d be surprised to know I went to see this apartment - bedrooms were too small :)
When I first rented and had rental history etc, I offered more than the advertised to secure the property as well as pay half a year up front. If you've got competitors who really really want the place they will find a way
Oops that was meant to be no rental history
This is nothing new, more than 10 years ago I secured rental property by offering 10% above the listed price.
Around the same time I had a colleague who moved from overseas and wanted a house in certain school's catchment area, he offered to pay rent six months in advance at 5% higher than listed price and was not accepted - iow somebody else offered more.
Either rents need to increase sharply or property prices in our capital cities needs to come down.
Costs are rising as a landlord and yields are too low, especially in Melbourne (and less so Sydney).
OP: Being a first timer, you should have done your research or at least use some common sense. Prices increase or decrease until you have signed a contract.
You are entitled to nothing and is absolutely legal.
The wellbeing of renters does not outweigh the wellbeing of others. Did you even think about the situation the LL is in?
I know it's tough, and not many rentals on the market. I assume that will change in 12 months, as the number of building approvals were double than normal it means there will be double the amount of available rentals.
At the moment, investors are enjoying life but things can change pretty quickly.
Supply and demand. Simple economics.
Time to increase my rents then.
I haven't increased any of them in 5 years!
Sounds like a good idea.
must be under market value then. get a rent appraisal from the REA.
2 of them are under market.
I dropped the rent a few of years ago to get them rented and never raised the rent.
''Real Estate agent increased the rental price since they have received so many applications I guess'
on one hand their ad is an offer to deal - and no contract is formed until someone signs the paperwork
on the other hand some complaints about underquoting for auctions got it made illegal to knowingly underquote
a current tenant could complain to Fair Trading about excessive increases within 6 months, etc.
but I'm not aware of it being illegal for agents to increase the rent pre-contract in the face of many applicants.
Blame the socialists! Ok neg me down I am used to it.
OP, this is not too bad an outcome, to be honest, consider what would happen if you tried to rent a house in Victoria. The new rental laws in VIC won't allow the REA even to tell you that somebody offered more, leaving you no opportunity to beat that offer. You'd be submitting applications and being rejected even without understanding what is happening.
In NSW at least you've got some level of transparency - you know you did not get this one because of pricing.
interesting - that's the opposite of my experience of a difference between Victoria and NSW
when I worked as a real estate salesman in Melbourne the first person to sign a paper which was then taken to the vendor to sign locked in the contract - offer/acceptance/contract - in one, on day one.
in Sydney you can think your offer has been accepted by the vendor, but nothing gets signed by both parties - typically AT ALL ('exchange' of contracts - each signed by the other - typically takes place weeks later), leaving it open to others to offer more and gazump you which you mightn't find out until like I did and an agent who didn't contact you finally tells you - oh, it's sold (to someone else) - grrrr!
A mate of mine has been offering upto 10% more than the asking price for rentals. Hope this gives you some context of the rental market.
It depends on the area and what kind of property.
There's plenty of supply of units and apartments generally, so you wouldn't need to offer up to 10% more.
just renting out place place now, agent called me this morning, i got 10 applications. You know what i'm going to do next? contact the good applicants (no pets, smaller fams, stable situations) and ask them to give $30 pw more, first to say yes gets it. Free markets in action - nothing personal
i have another place on the market, it's less desirable. No good applications for two weeks. I've slashed the price by 50pw and ready to slash again to get it filled. Sometimes you win sometimes you lose, I don't whinge when things are against me.
"I don't whinge when things are against me."
should try it, all the tenants do.
Didn't realise you can speak for ALL tenants.
just replying to myself for closure - someone offered 100pw over asking. Several more offered over asking.
My other place is still vacant. cest la vie
I do not understand why people seem to think landlords are super rich guys and almost evil people. media and politicians instill that in people. Those guys also have families. Real estate is a business it's not a charity. Most real estate holders probably loose money while they are holding it. Sure interest rates are cheaper but when they go up and up they don't get any assistance. When rent goes lower nobody asks them if they can afford their mortgage payments? You always have an option to rent cheaper property elsewhere. If you want a prime real estate and demand is high then you pay the price to secure it or you don't. We live in a free capitalism system. You may want to pose the question to politicians who made is easy for money to be worth less now than it was 2 years ago. They did not take any paycuts at all instead they ask small income guys to take a hit.
I don't think they are evil, nor super rich, just misguided. People just follow the herd, and FOMO in without doing the maths.
Well they have a right to invest where they see fit but not be demonized and penalised for merely owning a property. They may be loosing money now. But there equity will be growing quietly and in 15 years time there mortgage will remain the same but there rent will hopefully double. In my opinion they are smart hard working people. It seems to me people are just jealous of their hard work and commitment otherwise people should not have any business to tell others how and where they should invest there hard earned Money. They have the brains of Thier own and they own the profit and loss of that decision.
"Demonized and penalised" - are you serious lol, There are so many perks and loopholes to property investment. Closing some of these loopholes or taking away some of the perks is not demonisation nor penalisation.
To be fair, property in a good location will always go up over a period of 10 to 15 years.
You can also say that for most blue-chip stocks, but the main difference is that you can leverage at four times with a very low interest rate.
There is an asset class where people can lend out their asset, earn high interest, use it as collateral, borrow at very low interest, fold their portion, earn more high interest, borrow again at very low interest and repeat.
The best part is that it doesn't come with tenants, pets or blocked toilets.
I'm not saying there's no profit to be had, of course it would go up, but what if something else goes up alot more.
I've included the leverage in my maths, so despite the ability to have so much leverage the returns of property is STILL not in the same league as some of the alternatives. Its not even in the same universe lol.
If I charted my investment returns from 2013 against what "could have" happened if I invested in property, the property investment line is flat, completely flat.
You are a bad business if you are losing money on 2 percent interest rates Especially considering that's only at 80 percent LVR.
I work in residential construction on medium to large projects and can confirm most buyers are investors and not home buyers. Mind you the townhouses were on sale for minimum $1.2M which forgoes the first home buyers grants. Ridiculous market bubble at the moment. Just anticipating a crash or no growth im these areas.
See what's up for rent in the market and the weekly rate for comparable properties. if the market ate has gone up due to demand etc, you can't really do much.
That's not relevant if the price was increased. The question is what`s the highest offer they have for the property. Even if they still offer for X, someone might offer X+Y to get the property, particularly if the "many applications" is real. It might be just BS to catch desperate tenants. If offer as much as you want to pay for the property, is a kind of auction for renters.
In the past, I've offered more than the asking price for two properties in an attempt to balance the "I have a dog" thing. That doesn't guarantee you will get the property.
I've also offered less than the asking price, and I got the house even with a dog.
Australia is probably the worst place in the world to be a tenant. Sometimes I wish this COVID lasts years, so the property market becomes at least reasonable here, but we never know… So many residential units empty in Melbourne Metro right now, some of them only 50% occupied, and prices are still going up. It's just ridiculous. Owners prefer to keep the price at $800/week for several months than renting for $700/week.
Find an older place, i offered $425 for an old home in Baulkham Hills, it was listed for $500. Got accepted. You should be applying to multiple homes within your budget! I offered $460 for a unique cottage on acreage in Castle Hill but probably got outbid on that one. Your tenant application needs to look reliable too. Been told many times that we had a great application so maybe review yours?
I got my rent reduced from $430 to $400 a week a few months ago. Could be because i've been here for 3 years, never missed a payment and they don't want to lose me as a tenant.
Welcome to the free market. Feel free to look elsewhere if you don't like the price.
Biggest load of bullshit I’ve read today.
Your type love to talk about capitalism and free market but forget to talk about the Government handouts property investors receive from the taxpayers - tax breaks against unrelated income streams. No other business gets that kind of handout from the Government.
Free market ey?
Technically that is not correct.
If you truly understand the issue it is not negative gearing that create the problem, it is the 50% cgt discount.
If you get rid of the 50% cgt discount, it is very risky to do negative gearing.
I just saw a property, the owner bought it in 2018. And then he just sold it 1,000 more than what he paid. He actually sold it at a capital loss taking into account stamp duty.
I’m not sure what you’re trying to say?
I’m simply calling bullshit on people screaming ‘free market’ when it’s clearly subsidised in one form or another.
Edit: also, im sorry to read that your friend made bad investment decisions. Unfortunately no investment is guaranteed.
You can always complain to whoever you want, the real question is will it drive change, to that I can answer. No it will not.
I’m in two minds about this and think perhaps the following solution might be appropriate.
For those receiving (or have received) government support (tax breaks against unrelated income) on the investment property purchase, rental pricing and other terms should be highly regulated
Those who don’t want to get the tax breaks can live in the free market world and do as they please on pricing and choosing tenants etc
To everyone saying "supply and demand", yes, but why? The borders are still closed, less international students, less new immigrants. At the beginning of pandemic, rent prices are dropping a lot. Where does the demand come from at the moment?
million dollars question. Keen to be educated on this.
I actually believe there isn't enough rentals available, hence no supply and still a demand.
"Isn't enough" means less newly built rental during Covid times? Gov stimulus (e.g., 25k for >150k builds) may have popped up supplies for sometime though.
Any reason explaining why demand has sharply increased? with less immigrants. Maybe we've locked many Aussie, who would have left if no Covid?
Yes, but why there isn't enough rentals available? Where does the demand come from? What is differing from the early days of pandemic?
@leiiv: my speculations for the low supply are:
@choosk: This would mean it's only a matter of time before property prices fall with investment properties hitting the market.
Yea it doesn't make sense. Factoring in that the market is flooded with buyers pushing up property prices.
Did you read the news? Regional rental is in shortage, price goes up while CBD apartments are empty and reduce prices to attract tenants. OP did not disclose the location but the general answer is : depend on the location
Not sure why landlords are here whining. Seen quite a few on Oz basically saying we owe them for being so gracious as to allow renters to give them money to live in their houses. The unfortunate popularity of purchasing an investment property has been skewing the supply/demand ratio. No wonder it's becoming more expensive for first home buyers, investors are literally displacing potential occupier's for personal gain and driving demand. It's hopeful that to hold investment properties becomes more expensive, might make it more affordable for the under 45s.
Or we could allow the estate owners to fizzle, ban international domestic housing investment, remove negative gearing concessions and make rental incomes part of individual tax assessments.
There would be lots of tears from people who have over-borrowed but the kick back would be that the Australian dream of owning ones own house would become a reality again for many as the prices tumble down to actual value.
@Emerald Owl: Lol im loving all these salty tenants coming out of the woodworks lately thinking landlords and the world owe them something.
I've owned several properties over the years, yeah I financed it through a bank but when I sold ive also made several hundred thousand since buying my first property 20 years ago - guess it was my property after all :)
enjoy paying rent.