Further proof has arrived that a physical housing shortage is a myth. We are entering a rental yield downturn as years of overbuilding and speculative over-investment in rental properties have started to flow through. Rents fell by 3% in my suburb last year, while prices rose some 8%. With the promise of endless price inflation quickly fading thanks to real limits to credit growth and our stuffed economy, and 50% of housing credit now going to investors, when the tide turns, it will turn quickly. Greed will be replaced by revulsion and horror. Ill keep renting thanks. The risks for buying are plain staggering, while the benefits of renting continue to stack up.
Posted on: Tue, 20 Jan 2015 06:59:44 +0000
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