Comments on: Rental pain shows no sign of easing http://www.crikey.com.au/2008/05/02/rental-pain-shows-no-sign-of-easing/ now with extra source Sat, 11 Feb 2012 13:13:23 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: dan of bubblepedia.net.au http://www.crikey.com.au/2008/05/02/rental-pain-shows-no-sign-of-easing/#comment-7328 dan of bubblepedia.net.au Thu, 01 Jan 1970 10:00:00 +0000 #comment-7328 The obvious and only realistic way that rent yields can be restored is never mentioned by these kinds of industry spruikers. House prices can decline until rent yields are seven to ten percent. How big a a decline would that require - only about 70%. Better we pretend that'll never happen. There's a few rational souls out here renting and growing rich. The rent's will rise story is a joke. Between the last two censuses the population of Australia increased by 5.8%, the number of houses increased by 8.2% and the number of empty houses increased by 15.8%. Phooey to pent up demand, there is massive pent up supply. Pamela is not alone in having noticed that despite the headlines there are empty houses all over the place. The obvious and only realistic way that rent yields can be restored is never mentioned by these kinds of industry spruikers. House prices can decline until rent yields are seven to ten percent. How big a a decline would that require - only about 70%. Better we pretend that’ll never happen. There’s a few rational souls out here renting and growing rich.

The rent’s will rise story is a joke. Between the last two censuses the population of Australia increased by 5.8%, the number of houses increased by 8.2% and the number of empty houses increased by 15.8%.

Phooey to pent up demand, there is massive pent up supply. Pamela is not alone in having noticed that despite the headlines there are empty houses all over the place.

]]> By: Andrew http://www.crikey.com.au/2008/05/02/rental-pain-shows-no-sign-of-easing/#comment-7329 Andrew Thu, 01 Jan 1970 10:00:00 +0000 #comment-7329 As pamela noted, there are not two classes - renters and buyers- but three -renters,buysers, and homeless. Mass homelessness ceases to be a purely financial proposition for any government. For owners, you can't collect a rent no-one can afford, and increased vacancy just reduce rents. I can't see much choice but flat or lowering prices coming out of this. Rents may rise- but not near enough to support prices as they are. As pamela noted, there are not two classes - renters and buyers- but three -renters,buysers, and homeless. Mass homelessness ceases to be a purely financial proposition for any government. For owners, you can’t collect a rent no-one can afford, and increased vacancy just reduce rents. I can’t see much choice but flat or lowering prices coming out of this. Rents may rise- but not near enough to support prices as they are.

]]> By: Pamela http://www.crikey.com.au/2008/05/02/rental-pain-shows-no-sign-of-easing/#comment-7330 Pamela Thu, 01 Jan 1970 10:00:00 +0000 #comment-7330 As an Amsterdam resident in the 80's during the squatters riots, i saw it took this sort of action to get a serious response to housing crisis. Australia aint seen nothing yet. I can count 36 empty houses/flats within a kilometre radius- empty for more than 12 months. Governments and private sector integrated plan needed. As an Amsterdam resident in the 80’s during the squatters riots, i saw it took this sort of action to get a serious response to housing crisis. Australia aint seen nothing yet. I can count 36 empty houses/flats within a kilometre radius- empty for more than 12 months. Governments and private sector integrated plan needed.

]]>