Less than 3 years if labor wins and abolishes negative gearing. Unlikely turnbull will lose though, but he can't stop the rising unemployment coming, which will see a large rise in renters. Too many people in oz living paycheck to paycheck that will struggle with their overextended mortgages once the reality of how the oz economy really is kicks in.
The RBA will no doubt drop rates, but the damage is already done. Lower rates will just exacerbate the bleeding by the foreign money exit.
RNT is a very speculative hedge with many hurdles to succeed if the economy does turn into a bloodbath, including dilutive capital raisings, but a possible hedge none the less.
Interesting times possibly coming, of which Australia hasn't experienced since pre war times.
RNT Price at posting:
21.5¢ Sentiment: Buy Disclosure: Held
