Advice for landlords & tenants to deal with the flow-on effects of COVID-19.
The ABC published an article stating 1.4 million Australians are experiencing mortgage stress, with 100,000 predicted to default on payments. While the worst of the COVID-19 pandemic is behind us, the ramifications certainly aren’t. Both landlords and renters are feeling the pinch.
For Adelaide Hills landlords
Millions of people lost their jobs or have relied on the JobKeeper scheme, which runs out in late September. Add to this the first official recession in 29 years and cash is even tighter for many households.
Most banks have offered to pause mortgage repayments for six months, for investors with a loan. While this ‘mortgage holiday’ offers breathing space right now, the interest is still compounding and will still need to be paid off. Discuss your credit score implications and check your landlord’s insurance policy. It’s always best to speak with your lenders if you feel you’re in a vulnerable position. Your Nitschke real estate agent can put you in touch with a good local financial expert if you need a recommendation.
For renters
We know renters are finding it tough right now, particularly those without permanent or fixed-term employment. While renters have been supported in assistance schemes during this time, reaching a place of security won’t happen overnight. Not only is income an issue, finding a house for rent with limited stock is difficult.
People who are renting should take the time to understand their tenant rights and lease agreement details. It’s best to talk with a local real estate agent who can give you professional advice based on your unique situation. An expert can help renegotiate the terms with your landlord.
There’s support available, for both of you
For landlords who have tenants not paying rent, they can request a reprieve for mortgage payments. And a tenant with no job can ask for a rent reduction or postpone payments, without getting evicted.
It’s important for landlords and tenants to maintain an honest, open conversation so both parties’ needs are met. Everyone has different pressures, so flexibility and adaptability are critical right now (and, most likely, for the upcoming months). And a real estate specialist can help bring it altogether.
For those people who are thinking of buying and extending a house this year, there’s good news. The Federal Government has announced it will provide eligible Australians $25,000 to build or dramatically renovate their homes. This is an initiative to inject money into the construction industry. If you’re a prospective buyer sitting on fence, this grant might add weight to your decision.
If you’re currently renting and going through difficulties, we encourage you get in touch with our real estate Adelaide Hills experts. For landlords under stress, we’re also here to help. Contact us on 8391 5004 or fill in this contact form.
From renters help to landlord rights, houses for sale and opportunities in the Adelaide Hills, ask us anything. This has been our home for 20 years. We know the Hills and real estate.
