I live in a brand new house, well it was when i moved in, and i rent it..
now, 4 years later i was talking to my landlord who had it valued this week.. turns out, its still worth what it was 4 years ago.. and its cost her more to hold the house than it cost me to rent it from her..
and mid next year house prices should start a nice decline in value..
who's the idiot?
yes rents will go down, just like house prices, its just at the top of the cycle before housing declines you have a period of time where investors are backing out, so you get a lot of renters with fewer rentals available.
after the fall, like in the share market, you have investors that buy back in.. same will happen in housing, and there will be cheap rents to fill those places when renters are also now buying too..
you know the saying "rent money is dead money" thats true about every 10 years after a fall, when rent and interest are close in cost. on this cycle because house prices have doubled out the norm of its trent it will probably take another 1 - 2 years to get back to that part of the cycle.. unless you belive the higher up you go the quicker and harder the fall is through the correction..
think about it, if you say investors are going to buy house's and push it up, and australia will be a nation of renters, then shouldnt there be lots of rental properties to move into right now?
its just that stage in the wheel, a wheel that is about to turn badly on you...
