“Even more sobering,during the past yearmedian rental costs have increased at more than five times the increase in the aged pension.
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“It is no wonder an increasing number of older Australians are relying on charities for food.”
Young said mum and dad investors provided more than 90 per cent of rental accommodation and negative government policies had resulted in a 30 per cent increase in the number of ex-rental properties being listed on the real estate market.
Almost 12,000 ex-rental properties were put on the market nationally in the year ending January 2024.
“Recent regulations introduced by a number of state governments mean that rights of tenants are now starting to supersede those of landlords while soaring taxes on investment properties are financially making it much harder for mum and dad investors to hold onto their rental properties on top of 13 recent interest rate rises,” Young said.
“At a federal level,the decision by APRA to limit the period of interest only loans have seen thousands of mum and dad investors sell their properties as they could not afford the principal payments.
“At the same time interest bans have been allowed to charge higher interest rates for investment loans compared to owner residential loans.
“On top of that changes to tax concessions relating to second hand rental properties have been removed meaning the supply of these cheaper rental homes has dried up.”
Young said Australia should follow the lead of New Zealand and ditch capital gains tax on investment properties.
Housing Minister John Carey declined to comment other than to say the greatest demand for social housing in Western Australia was and always has been for seniors.
The state government reached a grim milestone last week with a record 20,000 applications now on the public housing waitlist.
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Shadow Housing Minister Steve Martin said the shameful figures,revealed in Parliament,were compounded by Carey’s continuing refusal to answer questions about how many new social homes are being completed each month.
“The waitlist of 20,132 applicants represents 35,924 vulnerable Western Australians waiting for a house to live in,” he said.
“With housing supply still chronically low,an18 per cent increase in Perth house prices over the past year and a rental vacancy rate of 0.4 per cent,this record can’t possibly have come as a surprise to the Cook Government.”
On Wednesday the state government approved stronger regulation of short-term rental accommodation in WA including the introduction of a $10,000 incentive for property owners to return their properties to the rental market.
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