People who bought investment property in the last 4 years are going to be bleeding in a year..
Looking at rentals now, so many brand spanking new homes, some with lawns not even grown yet, and landlords have obviously just bought at the top of the market, and expecting to get rents to match..
when housing falls by 30% or so then the value of the rent on those props is also going to be down by the same ammount.
dont understand why land lords think they will still be able to hike the rents up higher and higher when renters will just become buyers..
that old saying "rent money is dead money" will become true again.
Landlords will be left paying interest on a loan thats far greater than the price of the house.. and collecting small rent for it, on a assett that just lost 1/3 of its value..
how to you walk away from that mess? housing may not over value this much for decades to come.
With this massive supply of housing comming on tap for sale it will probably happen soon rather than later, probably why Rudd did this FHOG to try and suck up some of the supply.
Housing needs to be regulated, so it cant over value like it is now, housing isnt a stock you invest in like BHP that can go up for ever, housing is peoples homes, people need to buy these to live and bring up familys.. needs to be some form of new control on investing in residential property so this bubble can never happen again...
