Property sales slowing but rental supply short as the rich get richer and the needy suffer

Property sales slowing but rental supply short as the rich get richer and the needy suffer

Australian Renters are still in a negative position with rental shortages and exorbitant prices holding firm.  While at the same time property investors are reaping the rewards but are unable to purchase extra new homes in many areas due to a shortage in supply and labour, meaning long waits and uncertain price hikes.

Many economists and finance specialists are also nervous about the impending future of the property market being able to sustain growth without decline as many of the fixed term loans convert to interest only, leaving many mortgage holders over-exposed and in danger of defaulting.

But as I learned many years ago through booms and busts, it doesn’t matter what market we are in as people will always be buying and selling. And if you are selling to reinvest into property in the same market conditions whether to upsize or downsize, it doesn’t really matter. The sad side of the story is of those who are over exposed and are forced to sell.

Canada has recently put the brakes of foreign investors purchasing in their country which will slow the increase in prices to unrealistic levels and give the young and less fortunate Canadians an opportunity to enter the property market, and I believe Australia should follow their lead and help Australians by giving them priority over the wealthy and the greedy.

Happy New Year