Page 3 - Newsletter Issue 11 - May 2020

What the Coronavirus means for Renters!

In response to the coronavirus the Australian government available for landlords who provide tenants with rent
has announced a six-month moratorium on evictions to discounts, while rental assistance will also be available for
keep a roof over the heads of struggling tenants throughout those in rental distress.
the country.
Tenants and landlords should check what is available in their
This has come as a welcome relief to many, and means that state to see if they are eligible for any benefits.
those who lose their jobs during this difficult time will still -Communication is key-
have the security of a home to go back to.
Those who are struggling to meet rental payments at this
While this is important to have in place during a public
time, or think they may need to in the future, should get in
health crisis, Minister Scott Morrison has stated, “There is a touch with their property manager or landlord as soon as
moratorium on evictions. That doesn’t mean there is a possible to work through any potential issues.
moratorium on rents.”
While tenants are still responsible for paying their rent, they
There are many property investors that are facing difficult
may be able to arrange something like a temporary deferral
situations at present too, and they may struggle to cover
or rent reduction depending on what the situation is.
mortgage repayments if they don’t receive rental income.
It’s also a good idea to get in touch with your state or
To help assist landlords and their tenants, states and territory’s tenancy support service. They can offer
territories have been offering relief packages.
counselling and legal guidance and may be able to direct
The details in some states are still being worked out, but in you on where best to go to get support or rent assistance.
Victoria for example there is a $500 million package to assist
commercial and residential landlords and tenants. Relief is SOURCE:- PRONEWS MAY 2020

How to make the most out of a Low Interest Rate

environment… ..

Interest rates are lower than they’ve ever been before, with
the Reserve Bank of Australia cutting the official cash rate to
a meagre 0.5 per cent at its March meeting.

This is the fourth rate cut since June 2019 and there are a
number of predictions that there will be at least one more
rate cut before the year is out, possibly as early as April.

An interest rate cut can bring about good or bad news Low interest rates mean that your savings account won’t be
depending on your situation, but there are things that earning you as much as usual so it’s a good time to shop
anyone can do to make the most of the current economic around.
climate.
Compare the different savings accounts on the markets and
Pay down any debt try to find one that will work better for you. Alternatively you
When interest rates are low it’s a great time to take a look at may want to use this time to park your money elsewhere.
your overall amount of debt and try to pay it down faster if Which brings us to our next point…
you can.
Consider investing
Some people choose to reduce the amount they’re paying on Since your money won’t be earning you as much sitting in a
their home loan each month after a rate drop, but if you can savings account, it’s worth looking for other ways you can
it’s worth continuing to make the same payments you have get your money to work for you.
been so you can get ahead on your loan and pay it off
sooner. It’s true that the current global economic environment is
quite volatile due to the coronavirus, meaning it could be a
Keep in mind that the quicker you pay off your mortgage, the risky time to invest in something like the stock market,
less interest you will end up paying overall – which means however there are other investments that have less risk
you could end up shaving thousands of dollars off of your involved.
mortgage.
In uncertain times bricks and mortar investments like
Take a close look at your savings accounts property and gold tend to be more popular choices, however
While it may be a good time to pay down debt, a low interest everyone should do their own research and work out where
rate environment isn’t so good for your savings account. their money will work best for them.

SOURCE:- PRONEWS APRIL 2020