Purgatorius Ignis

Highlighting the nonsense, the stupid behavior, the price drops, basically showing real estate is not a one way street is what I get a kick out of. I get extra kicks from the fact I do it all while lounging around in my underwear. Don't worry readers I do have respect for you, most of the time I do change into my best pair when writing this blog.

The satisfaction I derive from writing this thing is often enough, but some people pray for carnage to be unleashed. This, well I can understand. I mean I'm kind of an arsehole, but I don't have my fingers crossed for the worst. I do understand the thinking - sitting around watching insanity be facilitated and rewarded, while maintaining a disciplined strategy yourself is like being fingered for rape and having your balls lopped off, while the rape artist is offered a lifetime supply of rohypnol to carry on his twisted deeds.

Mildly infuriating at the least, and earlier tonight something pushed me to that edge, I truly slipped into the mindset that prays for the cleansing fires to rage. Watching my favourite 8pm train-wreck, Your Money, Your Call, I heard some 23 year old ring in and try to sniff the wind on interest rates.

I should mention, he had two units in Western Sydney - both interest only. Within seconds he was being congratulated for owning two properties at 23. And my first thought, "this guy doesn't own anything, we're now handing out gold stars for procuring debt?"

The question turned to his reasoning for interest only. He was living at home so he figured the rent was covering his interest and within 5-6 years he'd be refinancing to unlock the equity the properties would have no doubt produced, later he noted he'd probably just flog them off and pocket the assured gains. As I listened to wannabe Trump stammer around how low he thought vacancy rates were, I wondered, armed with such knowledge, what would be the odds of getting anything fixed as a tenant in one of his hovels?

I think of the rental slum that sits next to a relative's perfectly maintained house. One tenant leaves, the carpet is cleaned and next tenant is shoehorned in. "Oh but what about the tenants, they have a responsibility!" I've never been aware of a tenant needing to sand and paint windows and eaves so they didn't rot, nor replace the rusted and decrepit roof of a carport. I'm reminded of friends in Canberra, 15 minutes walk from Parliament House, coughing up $500 a week for the privilege not having an oven that works, nor will work anytime in the future because there's no benefit from fixing it. Or the friend's bathroom in Adelaide, where renovations started, but the landlord lost interest a third of the way through and matters of vanity now forever take place in a construction zone.

These stories are endless and it's pointless to extract every one, but the point is, property speculators, in their strident defence of negative gearing, are the people who tell you bold faced they're providing a service to the community and putting a roof over peoples' heads. Yet when I hear about these stories along with that 23 year old and his interest only strategy, it's a reminder unless building to provide a rental - there's no creativity, there's no innovation, there's no service. It's securing a loan and hoping to land in a pile of money without lifting a finger or spending a cent.

Maybe I'll be burnt if the worst happens, but sometimes I just don't care. We need the fires of hell to cleanse us of the people who are doing no more than scorching the earth themselves.