flag of convenience Posted April 3, 2015 Share Posted April 3, 2015 Would they? If investors pulled out the market then it's likely that rental properties would be sold onto owner occupiers. That would reduce rental demand. Secondly, rents are elastic. If they go up then people will buddy up for house shares. Furthermore, there are hard limits as to what people can actually pay. I can't see the rents in Sydney doubling overnight as people are already stretched there. Somewhere like Melbourne would have more headroom. You are correct. Without tax funded investors or buy to rent investors crowding the market as is the case in modern day Australia, prices would be less inclined to inflate at least in the cheaper market. Save a lot of pain and suffering that must surely be the end result. Many don't want to see but it evidently cannot continue as at present. Sooner the bubble popped the better. Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted April 3, 2015 Share Posted April 3, 2015 You are correct. Without tax funded investors or buy to rent investors crowding the market as is the case in modern day Australia, prices would be less inclined to inflate at least in the cheaper market.Save a lot of pain and suffering that must surely be the end result. Many don't want to see but it evidently cannot continue as at present. Sooner the bubble popped the better. Disagree because I have seen the misery caused by people losing their homes through circumstances beyond their control. The best way would be a very long period of house price stagnation slowly eroding value through inflation but not putting homeowners in negative equity. This happened here for a few years mainly because of difficulties getting high loan to value mortgages during the GFC and it did make homes more affordable. We seem to be backsliding again unfortunately as memories fade. Boom and bust tends to favour the clever speculators. Stagnation in values keeps them away. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted April 3, 2015 Share Posted April 3, 2015 Disagree because I have seen the misery caused by people losing their homes through circumstances beyond their control. The best way would be a very long period of house price stagnation slowly eroding value through inflation but not putting homeowners in negative equity. This happened here for a few years mainly because of difficulties getting high loan to value mortgages during the GFC and it did make homes more affordable. We seem to be backsliding again unfortunately as memories fade. Boom and bust tends to favour the clever speculators. Stagnation in values keeps them away. I have as well. I believe at some point we may be required to endure deflation across the board. Sadly things were allowed to get way out of hand during the boom conditions. Always those most vulnerable pay the piper. No doubt all too many fell under the spell of dodgy loan sharks. Many others the greed. A return to a degree of sanity regardless of there being losers will be no bad thing. Beats the entire banking system under duress anyway. I do not see what the further lowering of interest rates will achieve other than further those getting into debt and the housing fiasco continuing to get red hot. Quote Link to comment Share on other sites More sharing options...
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