CEO, Wealth Educator and Best-selling Author, Stuart Zadel, shares a recent news article from December 2018 – “Short-term Airbnb Win” – about a gentleman in Victoria who took a ‘Property Rights’ case to court and won, and why this is positive for Airbnb investors.
Well, hi guys and welcome. This is Stuart Zadel, CEO of Zadel Property Education.
This success tip is about a major happening just before Xmas: Short-Term Airbnb Win.
What happened is, in Melbourne in a suburb called Doncaster, a property investor has a property in a very nice building down there that he was listing on Airbnb.
However, the owners’ corporation ganged up and they decided to ban Airbnbs in the property – which I understand is illegal to trespass on someone’s ‘property rights’ like this.
But people want to control what’s called the ‘narrative’ and everyone wants to think that Airbnb is this terrible thing, and there’s parties and people wrecking places.
And look, there might be the odd one, but I’ve never even heard of it ever.
… Maybe in the media and I don’t even know if that’s true because we know the media makes a lot of stuff up, you know.
What there are though, is a lot of people are getting rich on Airbnb… and there’s huge demand for people wanting to stay outside of hotels, stay longer, stay regional, all this sort of stuff.
Anyway, good on him, this gentleman appears to be maybe of an Asian descent. His name is Zhang Lim and he took the owners’ corporation to court.
“The owners’ corporation went as far as to deactivate the fobs for his tenancy using his property”, so he couldn’t scan to get into the building. I don’t know about you but that sounds criminal to me.
But anyway, he took them to court, he went to VCAT, and he won.
Immediately the judge or the owners’ corporation admitted that the special rules that they had registered at the Victorian Titles Office to stop short-term tenancies were probably invalid, documents show.
… And that’s true, ladies and gentlemen.
There you go, that’s a major win for Airbnb and a major win for freedom and your rights as a human being in this country.
Your property, you have a right to do with it what you want as long as it doesn’t infringe on others and all that sort of stuff (there are rules around that).
So this is a major win and major boom for Airbnb-ers in the State of Victoria and it’s common sense…
You own your property, you should be able to do with it what you want. And it makes good business to make sure you’ve got good tenants in there and you follow the rules and you keep everyone happy, which is what business does.
This is part of a much wide bigger problem going on right now and it’s actually some of the tenants have communism.
One of them is a progressive tax system which Australia has, which is communist.
Another plank of tenant of communism is to eliminate private property rights which is what these people are trying to do.
So there’s a really interesting trend going on worldwide and certainly in Australia right now that’s got me very concerned.
But ladies and gentlemen, you want to stand up for property rights, you want to stand up for your rights as a flesh-and-blood human being right now.
And you want to make sure we maintain some level of control and functioning in this country because there’s plenty of people out there that wouldn’t like you to do that.
But let me tell you. Airbnb is incredible. It is changing the game of property, and I hope you check it out… and if you’re in the State of Victoria, that should give you some further peace of mind that even the law is on your side.
Look, I tell you what, before I finish this…
When you got two properties, ladies and gentlemen… that’s a house, that’s a house, could be apartment, whatever, a piece of property. And this one is getting a rental yield of, say, 4 percent, but this one on Airbnb is getting a rental yield or return of 9 percent. It is only a matter of time before the numbers are going to ring. And ultimately, governments and councils are going to back this because what do they want, they always want money, don’t they? They always want their taxes and fees and stuff for being incompetent and making up rules on the monopoly that no one else has got access to.
But I tell you what, this is going to win because when this apartment here sells for 600,000 at a 4 percent yield, what’s this one worth at double that? Is it worth 1.2? I don’t know. Maybe not. But I tell you what, in a cashflow-starved world, people are going to be looking for greater yield and greater returns, and there’s going to be all sorts of legal suits come up. If this body corporate was to stop this gentleman earning his money, there’s now a tangible financial loss to this gentleman and there’s going to be all sorts of legal suits come up to defend these property rights, and protect your rights as an entrepreneur, as an investor as well.
So anyway, I hope you enjoyed this little tidbit, the news and what’s going on. And if you haven’t checked out Airbnb yet, I highly recommend you do it.
It was my number one strategy for 2018 in property and highly likely to be so again in 2019.
It’s incredible what’s happening, and I hope you get in the game and know what it’s all about.