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  • #16
    Originally posted by mumof2 View Post
    In Australia it is hard to get credit unless you have good savings and a job that pays over $40,000, thats for CCs, loans...anything....and if you didnt pay your morg here they would boot you out after a couple of months and you would still have to pay the loan...so much stricter here....which is good in some ways and hard in others as we budget well etc but paying rent and saving up to $30,000 for a home deposit is really hard ($20,000 of that is upfront fees) so not as much as an issue over here...but I don't trust the people who does credit scores over here..they essed up my hubbys and won't fix it.
    It is really eyeopening here. I actually live in a state that just did the really stupid idea that people can be 2 weeks late with the rent with no penalty and made it much harder to evict people they mistakenly think this will help people from becoming homeless but now apartments and rentals just lifted the requirements so many can not qualify for a place anymore.

    example: if rent is 1000 you used to need to show income of about $2200-2500 now thanks to this NEW law landlords want to see 4000-4500 income to even qualify to rent to try to weed out people that will be almost impossible to get rid of. So many in apartments are trapped as they cannot move because they may not meet new income requirements. so i guess they are stuck until place raises rent so high they have to leave (rent increases around here are about 100-200 a month every year.

    I can only assume that most lawmakers simply assume the people being evicted for not paying were ACTUALLY trying to pay.

    Too many know the system and simply when they are close to end of lease not pay there seems to be little recourse. A friend works in property management and told me he had to evict a tenant owed $10,000 in back rent ( the apartment place won a court judgement) but the debtor was unconcerned, as someone gave him a mortgage to buy a place.
    HOW does a loan happen with that kind of judgement on him who knows? I simply do not think places do thorough background checks.
    Last edited by Smallsteps; 09-03-2019, 05:55 AM.

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    • #17
      Originally posted by Smallsteps View Post
      example: if rent is 1000 you used to need to show income of about $2200-2500 now thanks to this NEW law landlords want to see 4000-4500 income
      Well there's part of the problem right there. Nobody should be getting approved for a rent payment of $1,000 with an income of $2200-2,500. That's just asking for trouble. I'd say a bare minimum of $3,500 (28% for rent) and ideally $4,000 (25% for rent). That new law should have been the rule to begin with.

      As for people with bad records getting approved for loans, I agree. I have no idea why that is permitted. In the 2008 housing crash, that was part of the problem - people getting ridiculous loans that they couldn't possibly afford, but the lenders didn't care because they issued the loans and then turned around and sold them so it wasn't their problem when the buyer defaulted.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

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      • #18
        Originally posted by Smallsteps View Post
        Too many know the system and simply when they are close to end of lease not pay there seems to be little recourse.
        This is also a big problem. The eviction process is SLOW. It can take 6 months or more to evict a non-paying tenant. So landlords are stuck with units occupied by people paying nothing for months at a time.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

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        • #19
          [QUOTE=Smallsteps;n706471]



          example: if rent is 1000 you used to need to show income of about $2200-2500 now thanks to this NEW law landlords want to see 4000-4500 income to even qualify to rent to try to weed out people that will be almost impossible to get rid of. So many in apartments are trapped as they cannot move because they may not meet new income requirements. so i guess they are stuck until place raises rent so high they have to leave (rent increases around here are about 100-200 a month every year.

          Over here once you move into a place they cant raise the rent for 12 months and then they have to give you 60 days notice to say they are raising it. In the 7 years we rented our house it only went up like $10 a month n 7 years....I do like our system better...

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          • #20
            [QUOTE=disneysteve;n706473]

            Well there's part of the problem right there. Nobody should be getting approved for a rent payment of $1,000 with an income of $2200-2,500. That's just asking for trouble. I'd say a bare minimum of $3,500 (28% for rent) and ideally $4,000 (25% for rent). That new law should have been the rule to begin with.
            [QUOTE]

            The 25-28% of income going to rent may be a financial planners expectation but no where near the real world. The law says NOTHING about % instead they forced those who own rentals to up the stakes hoping to eliminate those that the new law will make it almost impossible to get rid of. This is far beyond normal time for eviction but instead doubles it.
            So a year or more to drop those not paying.

            Here is the reality though a Studio apartment that qualifies for the state/ city low income guidelines is $1503 a month so x 4 =6012 a month income. Yes a studio

            A 2 bedroom go for 3000 ( 12,000 a month income). This is NOT possible with the AVERAGE job we are not all doctors.

            Most mortgages are not even following the 25% rule anymore.

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            • #21
              If I was a landlord renting an apartment for $1,000, there’s no way I would rent to someone making less than $3,000 no matter what the law said. I think $4,000 is pushing it but $2,500 or less? Not a chance.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment


              • #22
                Originally posted by mumof2 View Post
                Over here once you move into a place they cant raise the rent for 12 months and then they have to give you 60 days notice to say they are raising it. In the 7 years we rented our house it only went up like $10 a month n 7 years....I do like our system better...
                maybe i was not clear on it but
                They only raise it usually we you renew lease once each year, but the average hike is often in the 100s of dollars.

                WE get the same 60 day notice that says when your lease is up the new rent will be $x but when it keeps going up and up.

                i just think if someone qualified under old standards of income they may not qualify when now to weed out dead beats the rentals are raising requirements much higher. so they can stay put and pay increase after increase or buy a tent as they are all over the main city in this region.

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                • #23
                  Smallsteps sorry I misread that...my bad....but that is just ridiculous to raise it that much each year...but I think people who own multiple properties just money hungry most will get the most rent they can and do little to no maintenance....just as long as they get their money....people like that deserve crappy tenants,,we were always great tenants and still got real bad service in the end so now I'm not so nice and do everything I can to protect us and we will take anyone to tribunal that I deem necessary now

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                  • #24
                    Originally posted by disneysteve View Post

                    Well there's part of the problem right there. Nobody should be getting approved for a rent payment of $1,000 with an income of $2200-2,500. That's just asking for trouble. I'd say a bare minimum of $3,500 (28% for rent) and ideally $4,000 (25% for rent). That new law should have been the rule to begin with.

                    As for people with bad records getting approved for loans, I agree. I have no idea why that is permitted. In the 2008 housing crash, that was part of the problem - people getting ridiculous loans that they couldn't possibly afford, but the lenders didn't care because they issued the loans and then turned around and sold them so it wasn't their problem when the buyer defaulted.
                    yeah, the lender typically doesnt care as long as the housing value stays high and they can turn around and flip it. real estate speculators do the same thing. it's like everyones playing hot potatoes with properties and hope not to get caught when the music stops/.

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                    • #25
                      Originally posted by Smallsteps View Post
                      maybe i was not clear on it but
                      They only raise it usually we you renew lease once each year, but the average hike is often in the 100s of dollars.

                      WE get the same 60 day notice that says when your lease is up the new rent will be $x but when it keeps going up and up.

                      i just think if someone qualified under old standards of income they may not qualify when now to weed out dead beats the rentals are raising requirements much higher. so they can stay put and pay increase after increase or buy a tent as they are all over the main city in this region.
                      when i get a good tenant, i dont raise rents. i think it's more expensive and time consuming churning tenants, dealing with vacancies, prepping property for rent to new tenants, and dealing with bad ones (and there's a lot more bad ones than good ones constantly looking for a new place to stay). Generally good tenants are smart enough to recognize a good deal when they see one, especially with the way the rents have been skyrocketing in my city. I pretty much get no calls about plumbing, appliance, or any other issues. The tenant fixes and deals with all maintenance issues.
                      Last edited by ~bs; 09-03-2019, 11:57 PM.

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