Wage subsidy to help relieve rental and mortgage stress
The federal government’s $130 billion JobKeeper wage subsidy will help to relieve the financial pressure on renters and landlords over coming months, according to the Property Investment Professionals of Australia (PIPA).
PIPA chair Peter Koulizos said the wage subsidy of $1,500 per fortnight to eligible employees and businesses would go a long way towards solving tenant and landlord issues during the coronavirus crisis.
He said the subsidy would allow more tenants and landlords to meet their regular financial obligations including paying rent and mortgages over the next six months.
“This policy has prompted a collective sigh of relief of sorts from tenants and landlords as well as everyone employed in the real estate sector nationwide.
“The payment will hopefully mean that there doesn’t have to be a philosophical debate over whether tenants or landlords are more worthy of financial support during these difficult times.”
Mr Koulizos said that before the announcement, many property investors had been worried about covering mortgage repayments if their tenants could no longer afford to pay the rent.
“Landlords want to maintain a healthy relationship with tenants but are generally not in the financial position to cover mortgage repayments for months on end.
“The subsidy provides much-needed support for businesses and employees significantly financially impacted by the pandemic, which will ultimately see more people keep the roofs over their heads.”