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Fitzgerald Charity Housing

Are Affordable Housing Tenants Good Tenants?

One of the myths Fitzgerald Housing’s research team keeps coming across is that tenants in affordable housing are bad tenants and a risk to your investment. We disagree with this myth and as we understand where it has begun, have unpacked that baggage to examine it closely.

 

Australians have been conditioned to believe that public housing is where the dregs of society end up and they are all drug addicted misfits.This is a very unfair stigma, and it has grown to cover almost everyone with housing assistance. However, for our purposes the tenants of affordable housing and public housing are different groups of people. 

 

Public housing is supposed to be for those in greatest need. The elderly, those with disabilities or complex needs are supposed to be the first housed in public housing. This results in a social environment that is less than desirable. However, this is not the choice of the tenants, but government policy. When most of the social housing was built it was for working people, and those with greatest needs were accommodated elsewhere. But as governments lost interest in social housing for our lower paid workers, they were pushed out and replaced with those who have higher needs. This changed the community in social housing and left it open to vilification by the media and politicians according to their agenda. 

 

The public housing tower blocks that we once so proudly showed off to Queen Eilzabeth are now dubbed ‘suicide towers’. 

 

Also, the physical condition of the public housing stock leaves a lot to be desired. Many are in desperate need of major repairs or updating, as demolition by neglect has been the past three decades of unstated policy. State Governments as landlords are the very worst in Australia when it comes to repairs and maintenance of their public residential property. 

 

Tenants cannot get repairs or maintenance done. They are not allowed to carry out repairs or maintenance themselves or they risk being evicted. Then the people themselves are blamed for the bad condition of the buildings.

 

The people in public housing have been vilified by the media for many years. Whenever some mainstream current affairs program is looking for a sensational story, they investigate them for the worst. A google video search for “bad tenants” brings up a plethora of these stories made by the commercial mainstream media. It is also not a coincidence that more of these poverty porn stories are published whenever politicians are attacking public housing in order to sell it off or slash funding. 

 

The waiting list for public housing all over Australia is enormous and almost all of Australia has waiting lists of more than five or ten years long. Therefore there are a plethora of other people who need affordable housing but will probably never get public housing as it is just not available. When it comes to public housing, there always is someone worse off than you, and so the queue continues to grow.

 

Private investment companies suggest that affordable housing tenants could be a problem. However, these firms are prioritising their bottom line and shareholders, not the investor or any potential tenant. These companies are for profit and as such will not recommend affordable housing as they don’t get as high a return. So it is in their best interest to steer their potential investors away from affordable housing. They push location, location, location, because the best locations are expensive, and affordable housing is rarely available in these areas. They also raise concerns about issues that may lower your potential return, such as the type of neighbourhood. In this they subtly suggest that affordable housing is in bad neighbourhoods and thus will attract bad tenants. It is all nonsense of course, and Fitzgerald Housing investment properties are dispersed throughout suburbs and towns in any case. 

 

There are hundreds of thousands of Australians who need affordable housing who will not qualify for the public housing lists, and these people are our most likely tenants. During the pandemic we found out who our essential workers really were.Mostly they are Australia’s Key Workers, those who actually keep the country running. The cleaners, baristas, taxi drivers, public transport workers and all the other lower income people who are essential. But it is not just those on lower incomes who require affordable housing now.

 

The housing market in Australia today has priced out people in professions, like Police, Nurses, Paramedics and Firemen. People in occupations who have to live near their place of work now cannot find homes they can afford. These people are also our potential tenants; people with stable and responsible careers who are key workers. Homeless and at risk veterans are another group we are targeting as tenants for affordable housing. 

 

Other potential tenants we are aiming to assist into affordable housing are women with children and older women. Women over 55 and single mothers are two of the largest demographics at risk of becoming homeless. They are also two demographics who make fantastic, long-term tenants who value stability. Older women and single mums want long term, stable houses to make into their homes. Mums want the stability for their children to stay at the same schools, make friends and feel secure. Older women also want the stability of a long term home where they feel safe and can build a support network. Both are less likely to risk that home by non-payment of rent, throwing huge parties or damaging the home. 

 

Rather than being a risk, the potential tenants that Fitzgerald Housing can provide will be ideal. They will be vetted by the professionals in the housing services industry we partner with for the best candidate for your particular investment property. 

 

Fitzgerald Housing’s potential tenants range from individuals through to families. Therefore this also provides the flexibility for a range of investment property sizes, from studio apartments through to multi-bedroom homes. It allows smaller investors a foothold in property investment that can be the stepping stone to larger investments. As we provide properties at up to 25% less than market value, a five year term on a small property through Fitzgerald Housing is an ideal first rung on the residential investment ladder.

 

Our flexibility also allows for an investor to help out a particular family or person while being fully protected from potential personal conflicts about the property management.You could choose your own tenant and not have to worry about having a falling out with them over a leaking tap as everything is taken care of for you. 

 

We cannot put a monetary value on the personal feelings of reward you will have knowing that your money is actually helping out another Aussie. An Aussie who is in the situation through no fault of their own but through years of systematic failure to address the growing housing shortage.

Together we can make a difference, secure your financial future, the future of the tenant and make a beneficial difference to the housing crisis in Australia. 

 

Have a chat to our consultants about how an investment property with Fitzgerald Housing will provide long term stability for both you and the perfect tenant. You will receive a monthly return whether there is anyone in the property or not, which is a huge bonus over private rental investments. Another bonus over private investment properties is we take care of all the maintenance, you just need to sit back and watch your bank balance grow every month. 

 

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