property 20 years lockout, page-18

Given enough time the ratio of owner-occupied vs rented property will tend more towards the European ratio.

There are generations of people in Europe that have always (and probably will always) rent. Some of these people treat the rented house as their own by doing renovations and repairs themselves.

In Australia, we currently we have about 30% of residential premises rented and I can only see that percentage moving up.

It is not just prices, it also social factors. For example, rises in contract labour and less "job-for-life" labour means a lesser sense of security and a lesser likelihood of taking on big financial commitments.

Another factor is rising divorce rates, one roof becomes two, but not always two owner-occupied roofs.

The demand for housing won't be affected, people still need rooves over their heads, just the number of renters.

One thing that I can see changing in the market is volatility. When you have 70% owner occupiers you are less likely to see selling in economic downturns then when you have 60% owner occupiers.

You only sell your family home as a last resort but you will be more likely to sell a rental property if hard times hit.

So as the ratio of rented properties increases you are more likely to see prices rise and fall than you are today.

I could go on but I know the attention span of reading Hotcopper posts is usually limited to a few lines.