there is a limit people can afford to pay unless landlords will allow more people in each property
To make the metrics better house prices need to reduce
I saw a place sell for 5.5 mill where I live last year, it’s on the rental market at $2500 per week
Yield not even 2.5%
Repayments 6%
Why should tax payers have to make up the difference via negative gearing losses
Now if the house which was worth 3 mill 3 years ago was purchased for 3 mill now the yield would be fair
So rather than keep putting rates up(there is a limit to what people can pay and this money is all removed from the economy) we should be finding ways to reduce house prices
