Walk The World Many property investors are choosing to leave the field, leading to a rise in the number of ex-investment property being listed for sale. There are many reasons why this is occurring, and we explore some of them today.
But in short, the marginal costs of borrowing on a rental mortgage have risen far faster than the rental income. And given the limited prospects of capital gains, and the removal of some offsetting perks from a tax perspective, investors are exercising their rights to quit. Another reason why rental supply is so limited, and a sign again of how broken the system is.
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Is it true that every tenth home in new estates must be a housing commission home. That’s what I believe is the rule in qld. Anyone heard of this
Do property investors burn the property when they sell? An investor leaving the market doesn't mean there's one less unit in the market as a whole, if an OO moves in it's one less renter in the market.
I can understand this argument for investors entering the market with a new build, but for existing properties it doesn't add up.
What a dream it would be to make borrowing money into existence to buy property an unprofitable venture. One can hope.
Since the rules were changed in around 1997, ie. compulsory super and half of capital gain tax, a majority of investment properties are held by big super funds and the little SMSF. Coupled with ever reducing interest rates, has driven house prices to the moon. We have to protect the property market or face the ruin of our retirement. We have to keep on inflating property prices. There is no return.
My opinion is house prices will come down a bit, inflation will rise, so over time they will even out and we be off to the race's again.
We must keep inflating or the fiat money system dies.
The government will help with pay increases by providing government employees pay rises and the rest will follow.
Expect higher inflation for longer and lower house prices for a while.
Why don't we just reduce immigration!
I have no sympathy for people, who own multiple houses. However, I feel very sorry for thousands of people, who are locked out of the property market, because of shortsighted policies by Politicians, RBA and Regulators.
The ongoing ramp up of migration by the federal government is not only squeezing the housing market but also continuing to add ongoing pressure to the nation's infrastructure.
Where do you see this ending up Martin?
😆 🤣 😂… investors, or speculators? Highly geared while ignoring rental yield, and speculating on capital gains…
It's not causing a lack of buyer demand, that's for sure.
So who's buying?
To stop new inflation it would be sufficient to increase the rate for new loans. Why should poeple suffer becasue the government allowed inflation?
But… But.. Michael Yardney says the property market is on the way back!
Precious metals 👍
How true Martin, love your honest viewpoints. It’s unconscionable that the government is increasing migration knowing fully that they won’t be able to find housing to live in when they arrive. The government seems to be putting their head in the sand and are not reading the conditions that ordinary citizens of australia are experiencing in the rental/housing market. The Australian rental market has become similar to ‘the hunger games’. I think there should be a royal commission into the housing crisis, rental market and short term rental such as airbnb, and migration intake. There are so many Airbnb homes that sit vacant for months on end. It is shameful of the government past and present. Australian citizens should not have to live in fear of not being able to have the basics of having a roof over their heads. The basics in human needs food and shelter, citizens are missing out on both of these at the moment. Thanks again for your great content Martin.
Pop pop pop the politicians promoting population growth agenda for the sake of creditbubbles and speculative mania.
Corporate political fascism is standard practice.
Land tax is also driving rents and displacing low cost housing rentals to be beyond the poor.
Thanks Martin for the great video. I would love to see discussion on quantity theory of money, applied to Australia.
Thanks Mr. Martin…1200 properties available for rent in the Parramatta Region of Sydney…hard times…eh?
It all depends…. Agree you talking about recent property purchases by investors or those that got in before all the 'crises' started or a mix of both?
I know that i am Cashflow positive with my 3 investment properties but i had interest only on the first two für five years.. you don't seem to give the full picture and just point out negatives.
What amazes/sickens/saddens me, is that politicians are surrounded by overpaid taxpayer funded idiots in treasury and they can't even add 1+1. Simple equation: building industry currently operating at full capacity (approx 190,00 dwellings p.a ) and just meeting demand. But wise Gov't thinks they can plug a hole (that they created) by increasing immigration by 500K. Average Aussie household = 2.4 persons, but less say 4 for the immigrants; that's an additional 125,000 dwellings or 165% of current production. Wow, sharp people we have leading this country.
Pop goes tax minimisers….
The rising interest rates can hurt investors, but they just pass the rate rises onto the renters. And no one is mentioning that the far-left Labour party in September 2022 raised the immigration cap to a record high of 195,000 people. Where are we going to put those immigrants? Especially as the house builders are going bust. Plus the commercial market will implode as office spaces remain empty.
They have openly stated what they are doing, but ordinary people cannot comprehend evil of this magnitude, and ascribe it to 'govt incompetence'..
You will own nothing and be happy.
BlackRocks there to take up the slack , Itll be fine , Its safe & effective /
But if people stop investing in Real Estate the government won't be able to Tweek the economy and stimulate employment with it. My god they may even have to invent new ways to get votes, like investing in things that help everyone like infrastructure.
The liberal government completely stuffed the economy and now Albasleeze is going to totally fuck it. Wake up sheeple there’s no difference they want total control over everybody. Why would you have record immigration when we don’t have enough housing supply record rents and major building companies going into receivership. Think about it, mind boggling.
Airbnb is doing great apparently. My theory is a lot of those are laundering money and nor being used by anyone. Thus those that do use Airbnb are doing great instead of trying to use an oversaturated market and losing money. Hmm.
Time to break out the detergent a hose and the water slide for the property market. Thanks Martin as always on point.
I too have had enough with the Governments here, state and federal. Martin, do you have a spare bedroom you're willing to rent to me? I promise to keep the noise down during your video recordings.
It's not a market! It's a government subsidised ponzi scheme.
Hello Martin,
Great seeing you 🤩
Yes good show. Housing snd rentals are going to get in a much worse mess is how it looks.
Informative and short tube. Many thanks. Indeed, scary stuff.
Goverment medling via greedy increasing taxation at every level, increasing code compliance driven by the climate scare scam will continue to drive up rental costs. Many people just need a simple, clean place to live, they don't need a zero emmisions home spec'd to account for every possible black swan event.
“Rents are not rising enough” ?
Thanks Marty great vid. Hope you settling in well back in the old country.
Australia is stuffed.
I turned 40k Into 650k in 5 years using property investing. Not sure what other stable investments options you are talking about that would of done the same returns.
Poor example at 1.20 suggesting smoke alarms contribute to investors leaving the market but love your videos ❤ # I maintain over 3000 properties in Melbourne.. 5.10 sec agree
You will own nothing ring a bell