Investor Heaven

Whilst the following is nice confirmation bias ( I sought and I found :p ) to support most investors' basis for purchasing IP's......to satisfy the demand from renters, there is the possibility that we move beyond the circa 30 % renters scenario.


http://www.businessspectator.com.au...es-hike-pd20091104-XFQY5?OpenDocument&src=sph


Harry Trig from Meriton always bleats the same old lines to enable more demand (affordability) for his product so he can build more, however Robert Gottliebsen makes some sense.


As FHB are priced out of the market due to a combination of real unaffordability (inability or not wanting to save) and a desire for instant gratification by starting at a level beyond their means, increasing population and now interest rates may see more demand from renters ;)

The ratio of 30 % renters/70 % OO's may change to reflect a higher proportion of renters/tenants as investors step in to service their needs.
We may indeed follow the way of European cities and some parts of North America, with New York a prime example, where the proportion of home ownership is far lower than here.

Nice news for those of us who are still accumulating resi IP's. :)
 
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