WEBVTT - As rents continue to rise, how will Aussies cope?

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<v Speaker 1>So here we are with rents rising capital cities everywhere.

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<v Speaker 1>What's the answer to this. There's so many places that

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<v Speaker 1>are too expensive and then there's not enough. So where

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<v Speaker 1>do we start.

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<v Speaker 2>Well, the reality is full that we have a real

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<v Speaker 2>shortage of properties to buy and also the properties to rent.

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<v Speaker 2>So what's happening is we've just got this real undersupply

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<v Speaker 2>and it's we're not having the supply come on fast enough.

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<v Speaker 2>Even though we've got federal and state governments trying to

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<v Speaker 2>put incentives in place, they're not building enough and not

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<v Speaker 2>coming through to completion quick enough to.

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<v Speaker 3>Meet the needs.

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<v Speaker 2>So we've got this real undersupply and we've got to

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<v Speaker 2>look at some ways how we can try and, at

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<v Speaker 2>least from a rental perspective, try and keep the stock

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<v Speaker 2>that we've got rental properties in the market and not

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<v Speaker 2>lose those properties.

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<v Speaker 3>So we need investors to.

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<v Speaker 2>Actually be buying rental properties that can rent out to

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<v Speaker 2>increase the number of rental properties on the market, but

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<v Speaker 2>also encourage investors to stay in the market and not

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<v Speaker 2>to sell, because what we're finding is when investors sell

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<v Speaker 2>in this ready type market is that it is an

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<v Speaker 2>owner occupier that's buying that previous investment property, and what

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<v Speaker 2>that means is one less rental property in the pool

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<v Speaker 2>of investments of rental properties.

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<v Speaker 1>But what's the answer to the owner investor? Where are

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<v Speaker 1>they going to live?

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<v Speaker 3>Though? What we're saying was with the investment.

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<v Speaker 2>What I would be recommending is that if we're encouraging

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<v Speaker 2>the investment is around new builds, that helps with the construction.

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<v Speaker 2>So I'm encouraging that investors be buying new properties around

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<v Speaker 2>the country. That keeps the construction industry going, hopefully keeps

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<v Speaker 2>out a little bit of competition in the established market.

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<v Speaker 2>So it's a real catch to any two because we're

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<v Speaker 2>short on properties for owner occupiers and we're also short

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<v Speaker 2>of properties on the rental market. So it's a case

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<v Speaker 2>of getting more supply out of the ground.

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<v Speaker 3>What we need with that is we need we need

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<v Speaker 3>more trades people.

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<v Speaker 2>A lot of the problems that we just don't have

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<v Speaker 2>enough traits normally. What would happen for is we may

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<v Speaker 2>have two of the capital cities really really going strong

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<v Speaker 2>on the market in the property market and the others

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<v Speaker 2>a bit soft, and we may find that tradesmen may

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<v Speaker 2>move from.

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<v Speaker 3>Capital city to capital city for work.

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<v Speaker 2>The challenge at the moment is we've got all capital

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<v Speaker 2>cities and all regional areas really strong capital growth, price growth,

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<v Speaker 2>and demand for building.

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<v Speaker 1>Because it seems that we just seem to go round

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<v Speaker 1>and round in circles with this, don't we when we

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<v Speaker 1>never seem to have an answer for what to do?

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<v Speaker 2>And you're right there, the problem does on a macro level,

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<v Speaker 2>does not seem to be changing at all. There's a

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<v Speaker 2>lot of there's a lot of words being spoken, but

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<v Speaker 2>it's not improving the situation on the ground and hence

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<v Speaker 2>why the lack of supplier is leading to prices going

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<v Speaker 2>up for houses and for rental.

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<v Speaker 3>So it's a big problem.

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<v Speaker 2>The way that we're going to get the real way

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<v Speaker 2>out of this is, unfortunately, is not a short term

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<v Speaker 2>thing where it's a fire ten to twenty year plan

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<v Speaker 2>that we've Actually we've got to increase the supply. A

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<v Speaker 2>lot of this supply, most effective supply is going to

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<v Speaker 2>be come froming from apartment buildings, because an apartment can

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<v Speaker 2>reside fifty one hundred, maybe two hundred people.

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<v Speaker 3>The challenge has been with still in our hangover from COVID.

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<v Speaker 2>Is that is that it became very risky for developers

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<v Speaker 2>to build when they're not really knowing their cost base

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<v Speaker 2>because input prices were moving and prices are going up,

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<v Speaker 2>they're very reluctant to commit to projects that take time

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<v Speaker 2>apartments buildings from beginning to the end, maybe a three

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<v Speaker 2>four five year commitment.

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<v Speaker 3>So what they need to be knowing is that.

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<v Speaker 2>They're they're pricing, their pricing is fixed, and if they

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<v Speaker 2>start selling early with the pre sales, that they can

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<v Speaker 2>actually make a profit.

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<v Speaker 3>And that's been the problems.

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<v Speaker 2>Developers have been very unsure whether they can build these

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<v Speaker 2>very much needed apartments and affordable apartments and still

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<v Speaker 3>Be able to make a profit and not make a loss.