Landlord slammed for defending increasing rates

A landlord has been criticised in the comments after trying to defend rental increases on TikTok.

Video transcript

I'm gonna get so much hate for this video.

Um, someone trying to rent a room for $860.

4 bedroom house.

Um, and it sparked a debate.

So I'm just trying to, um, say a few things.

Hopefully, I can make some sense.

I'm actually walking in the rain, so I had to get out of the house, so I don't look like an idiot screaming into the camera.

So the the house Right now, this is my own house.

And this house is the most basic four bedroom house you can ever buy around, I think the most basic and the smallest four bedroom house and this house currently valued for $680,000 even right now, if you go, uh, search for a rental of house to buy in this area, which is worth about minimum four bedroom house will worth $680,000.

And if I want to buy this property as investment property, I need 20% deposit which is 136,000 and upfront Cost is $32,000 in stamp duties, and so then so total.

After the 20% I need to borrow $544,000 from the bank at 6.49% the lowest current interest rate.

And if I go for that and then my repayment for a month will be $3842 and then I had to pay rates and insurance.

So currently I'm paying $9024 in insurance and rates for this house, which is comes down to 137 $173 per week.

So your weekly payment mortgage is 800 50 850 then the 173 plus whatever comes down to $1073.

I had to charge to break even if I had to rent out this as an investment property.

But the reason If you buy and there's so many different prices, some, sometimes you find cheaper rental, or sometimes you find it this most expensive because those people bought this house 15 years before for like, less than 400,000.

And then over the 15 years they paid half the mortgage, and so they have left like $200,000 which is bug roll when it comes down to for their cost, maintaining that property.

So there's a big difference in between rental market because the current spike of the, uh the value of the property prices so well, that's it.

If you wanna buy this kind of property, and then if you rent it out to break even, you had to charge 1050 $70.

Or you gotta put out put out from, uh, pay from your pocket.

So don't hate me.

I'm just explaining a few things, so hopefully you understand?

And then so we don't have to kill each other in this beautiful town.

Love you all.

Bye.