Residential real estate investment has always been subject to both encouragement and regulation by Governments.
The encouragement is mainly in the form of tax breaks, such as half tax on capital gains, negative gearing and depreciation. It's not all encouragement - land tax is a negative.
The regulation is mainly in the form of tenant rights and protections.
NSW has introduced new tenant friendly laws which started on 23 March 2020, which are:
- Seven 'fit for occupation' standards have been introduced to spell out what 'fit for occupation' means, such as there must be natural or artificial light and ventilation to all rooms, electricity, water and gas, contain a bathroom and be in a reasonable state of repair. (applies to existing and new tenancies)
- Smoke alarms must be checked and batteries replaced annually. (applies to existing and new tenancies)
- Tenants are allowed to make minor changes such as installing hooks, nails or screws, installing curtains and blinds, an internet connection and fly screens, and even planting vegetables, flowers and herbs. (applies to existing and new tenancies)
- Tenants can terminate fixed term leases early without reason and pay a small early termination fee such as 3 weeks rent for a termination before the term is half way through. (applies to new tenancies)
- There is a new standard form lease and condition report.
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