In Perth, there are a lot of people with investment properties, everybody jumped on during the mining boom. I assume many of these are negative geared, if these are owned by people in the mining industry who have either lost their jobs or have taken a pay cut (I work in the mining services sector and have witnessed 100's who have) and with the rents coming down or houses sitting vacant for extended periods in Perth due to less demand and substantially in places like Newman and Karratha etc, the first thing to go will be the investment property. This would bring a lot more homes onto the market as the rents will cover less of the mortgage and the investor may not be able to make up the shortfall, regardless of tax incentives.
And as stated above, the toys will also be up for sale as well. Cheap jet ski, bike, boat anyone?
