Hey Gazza, I work in the industry, I trade shares and invest in companies so I'm always looking for an opportunity. I just don't see it here. I'd like to think that my advise is being considered by those that are looking for an investment. I read people talking about an industry that they really don't know a great deal about and quoting fact and figures that are flawed based on my personal experience of 20 years in the industry. I like to think that I offer a balanced view.
For example Jub Jub and Poly. Currently in Melbourne the rental market for landlords is pretty tough. Not tenants - landlords. There's been an investment boom in Melbourne and every man and his dog has invested in property. New apartments everywhere. Where 5 years ago you might get 20-30 groups at an open and get 6 or more good applications to choose from you now might get 4-6 groups through and an application if you are lucky. Family homes are performing well but apartments are tough work. Were you aware of this? Phone an agent and have an off the record chat to them. Agents are pouncing on any good application that comes in!
Now getting back to the point of this thread. Tenants doing credit checks on themselves. Do you really see any meaninful revenue being derived from this for a $30m company? Private landlords - yes and handy feature if you are leasing a property yourself but once again we are talking about a small percentage of the total market.
The only way that RNT are going to make any serious money is if they can take substantial market share away from REA and Domain. That's where the money is. Others have tried and failed. Why will RNT be different?
RNT Price at posting:
28.0¢ Sentiment: None Disclosure: Not Held
