Blaming Landlords For Killing The Great Aussie Dream Doesn't Make Sense
Landlords provide a critical component to a healthy property market through much needed accommodation and a stepping stone for those who are potentially transitioning into homeownership. Jacob Field explains.
Landlords regularly cop a bad wrap for perpetuating skyrocketing property prices and making the great Aussie dream of owning your own home out of reach for many everyday Australians.
Ripehouse Advisory CEO, Jacob Field argues that blanketly pointing the finger at landlords for unaffordable housing in this country, doesn’t make sense.
Landlords provide a critical component to a healthy property market through much needed accommodation and a stepping stone for those who are potentially transitioning into homeownership.
“For residents who are starting out and getting established in life, landlords play a fundamental function.
“Whether they are studying at university or undertaking an apprenticeship, for most Australians their first move away from the family home is into a rental.
“Rentals also provide a necessary safety net for residents going through financial difficulties following a marriage breakdown, job loss or business failure,” said Jacob Field.
Furthermore, when residents move to a new location for work opportunities, they will generally want to rent before they buy.
“For residents moving into a new area it might be from another location or another state, it is a dramatic life change.
“For the first 6-12 months, generally people will prefer to dip their toes in the water first and see if they enjoy the new job; if they like the new area, and experience whether the communitute to work is actually sustainable,” said the CEO.
Field debunks the claim that landlords are responsible for a housing affordability crisis in this country.
“Prices go up in owner occupied concentrated areas at the same rate, if not in greater incriminates than in tenant concentrated areas.
“For example, typically the highest capital growth areas over the long term are capital city locations and established bluechip suburbs where owner occupiers rule the roost,” said Mr Field.
It is a commonly held misconception that blames property investors for preventing renters from homeownership. Field refutes this notion suggesting owner occupiers place greater upward pressure on property values than landlords.
“The only reason landlords exist is because they provide a necessary utility, making homeownership in the first place a possibility for many Australians,” said Mr Field.