Property under fire: tenants, property owners and older Australians bear the brunt of Covid-19

30-Mar-2020 9:45 AM EDT, by University of South Australia

Newswise — Property experts at the University of South Australia are urging the government to implement immediate rental subsidies for tenants as financial hardships continue to wreak havoc for property owners and older Australians.

The call follows the Prime Minister’s announcement for a six-month freeze on evictions of tenants who are unable to pay rent as a result of Covid-19.

Property and investment researcher, UniSA’s Peter Koulizos says while this is the right move to look after tenants experiencing significantly financial hardship, it only looks at one side of the equation with older Australians, property owners and tenants all feeling the heat.

“One third of Australians rent their home. So, while the government is trying to support struggling tenants, it’s overlooking the impact on landlords, many of whom need to pay mortgages, or rely on rental income as self-funded retirees,” Koulizos says.

“Simply asking landlords and tenants to negotiate individual arrangements to withstand the crisis is not enough.

“One solution is to initiate immediate rental assistance for tenants so that landlords do not experience flow-on impacts to their own mortgages or income. This assistance could be a percentage of the rent that tenants are currently paying, up to a certain limit, and varying according to the city in which they reside. But the point is to address problem in its entirety and to keep it fair.”

Banks have responded to the issue by offering six-month deferrals in mortgage payments, but as Finance and investment expert, UniSA’s Dr Reza Bradrania says, they’re still not considering the full picture with mortgages continuing to accrue interest and add to the overall expense.

Dr Bradrania says self-funded retirees are likely to feel the brunt of changes to the rental market.

“Older investors who have paid off their mortgages and are using rental incomes to live as self-funded retirees are at particular risk right now, as they will not be receiving any of the same supports that old age pensioners will receive,” Dr Bradrania says.

“These people rely on rental income to fund their retirement, but with no rent coming in, they’re in a very precarious position.

“The government should be looking to help out self-funded retirees whose income falls below that of the old age pension, and then consider an appropriate portion of the old age pension to top up their income until the situation improves.”

For older Australians, the pandemic has struck hard, particularly for those drawing upon their superannuation to survive. Housing and property researcher, UniSA’s Dr Braam Lowies, says he is very concerned for older home owners amid Covid-19.

“Older people on the brink of retirement represent one of the most vulnerable groups affected by the pandemic – not only due to health reasons, but also because of the future superannuation income losses,” Dr Lowies says.

“These people will find it extremely hard to regain these losses when they retire, and may be forced to work longer, if indeed they still have employment.

“Furthermore, in the past years we’ve seen an increasing trend for older people to either retire with an outstanding mortgage, or rent, which is another challenge.

“In the current pandemic, superannuation incomes severely diluted by massive losses in the stock market and a slowdown of activity in the property market puts Australia’s older population at real risk of outliving their current retirement income.

“To help older Australians, the government must revisit the role of the family home as a variable in the asset test for older Australians, as well as prioritise mortgage holidays and rent relief.    

“Everyone is taking a hit during the Coronavirus pandemic – we all need to work together to formulate solutions for the common good.”

…………………………………………………………………………………………………………………………………………………

Media contact:  Annabel Mansfield office (08) 8302 0351 mobile 0417 717 504 email Annabel.Mansfield@unisa.edu.au Researchers: Peter Koulizos mobile: 0412781236  email: Peter.Koulizos@unisa.edu.au ; Dr Reza Bradrania  mobile 0405 592 086 
email: Reza.Bradrania@unisa.edu.au ; Dr Braam Lowies  mobile: 0497 357 514  email: Braam.Lowies@unisa.edu.au




Filters close

Showing results

110 of 2011
Released: 29-May-2020 11:55 PM EDT
Heart surgery stalled as COVID-19 spread
University of Ottawa

As the novel coronavirus spread across the globe in early 2020, hospitals worldwide scaled back medical procedures, including life-saving heart surgery, to deal with the emerging threat of COVID-19.

Released: 29-May-2020 11:30 PM EDT
UCLA AASC & FSPH launch COVID-19 Multilingual Resource Hub to support safety for diverse communities
UCLA Fielding School of Public Health

UCLA Asian American Studies Center and the UCLA Fielding School of Public Health COVID-19 Multilingual Resource Hub to support safety for diverse communities; partnership develops resources for COVID-19 response

Newswise: UTEP Study Examines COVID-19 Stress, Coping Strategies, and Well-Being
Released: 29-May-2020 6:15 PM EDT
UTEP Study Examines COVID-19 Stress, Coping Strategies, and Well-Being
University of Texas at El Paso

Emre Umucu, Ph.D., assistant professor of rehabilitation counseling at The University of Texas at El Paso, and Beatrice Lee, an incoming rehabilitation counseling faculty member, examined the perceived stress levels and coping mechanisms related to COVID-19, and how coping affects well-being in people with self-reported chronic conditions and disabilities.

Newswise: 233197_web.jpg
Released: 29-May-2020 4:55 PM EDT
CT findings of coronavirus disease (COVID-19) in children 'often negative'
American Roentgen Ray Society (ARRS)

An investigation published open-access in the American Journal of Roentgenology (AJR) revealed a high frequency of negative chest CT findings among pediatric patients with laboratory-confirmed coronavirus disease (COVID-19), while also suggesting that bilateral, lower lobe-predominant ground-glass opacities (GGOs) are common in the subset of patients with positive CT findings.

Newswise: 233198_web.jpg
Released: 29-May-2020 4:40 PM EDT
Modelling predicts COVID-19 resurgence if physical distancing relaxed
University of Guelph

If physical distancing measures in Ontario are relaxed too much or too quickly, the province could see hospitals overwhelmed with COVID-19 patients as well as exponential growth in deaths, concludes new research involving a University of Guelph infectious disease modeller.

Released: 29-May-2020 3:35 PM EDT
Using Wastewater to Track, Contain SARS-CoV-2
SUNY College of Environmental Science and Forestry

Researchers took a novel approach to tracking the virus that causes COVID-19 that promises to be cost effective and ensure privacy by using a method that surveils for the virus in a local's untreated wastewater facilities.

Newswise: fimmu-11-01208-g001.jpg
Released: 29-May-2020 2:40 PM EDT
Genetics May Explain High COVID-19 Mortality in Italy, Inform Global Pandemic Response
Sbarro Health Research Organization (SHRO)

Researchers predict the Human Leukocyte Antigen (HLA) gene has a key role in shaping immune response to COVID.

Released: 29-May-2020 1:40 PM EDT
Study finds surge in hydroxychloroquine/chloroquine prescriptions during COVID-19
Brigham and Women’s Hospital

A new study by investigators from Brigham and Women's Hospital examines changes in prescription patterns in the United States during the COVID-19 pandemic.


Showing results

110 of 2011

close
0.84643