Pros and Cons of RNT - Dog or Gem?, page-6

Future Shock & Dislocation of a business model that has not changed.
As with other posters much of what you question has been answered in some detail in earlier posts.
However there is one aspect of the market that few have talked about that being the mantra of real estate agents that the vendor is king, with the mantras "List & Sell" either for sale or lease.
I believe that day is over as the stars are aligning to make it a buyers market unlike anyone alive today has experienced placing market power in the hands of the tenant and purchaser of property.
All the factors that created the conditions that have driven the property boom are going into reverse or static and will go in reverse.
Australia's population growth rate of a third world country since the Howard kicked it of is over.
as an example the kiwi invasion is over for the first time since records have been kept there are more kiwis leaving than arriving.
Household formation is slowing .
The baby boomers have over invested in housing and will have to sell to fund retirement
Foreign investors are going to be divesting property as they get caught in the new regime of enforcement by ATO
Housing is so unaffordable we are having fewer and fewer new entrants into the marker.
They have been replaced by investors from here and foreign much of it illegal.
That is going into reverse with Perth is a good example of what is underway and will happen to all markets in Australia.
ATO action on undeclared capital gains and income from property. Starting 10 years ago the ATO started developing a cross matching program which had property added to it August last year. This is a bobby dazzler. Check out government gazette on the regulation. This is going collect monumental sums of money. Its a very sophisticated program and its going cause a lot of property to have to be sold. Its a real sleeper.
Supply we have just had the biggest residential construction boom ever with most of it for delivery 2016/17. Just as the market does not need it.
The shock as we loose 6% of GDP aka the mining construction boom and the shuttering of the car industry with nothing to take its place apart from the drug hopium and optimism from Turnbull and oops I forgot the transition from Barrister to Barista economy anyway I digress.
World record household debt will make those with any money left be very careful how they spend it.
I could rattle on a lot more but you get the drift so in short we are going to see the market move in oversupply big time unlike anything in anyone's working life as our two legged economy of flipping houses to each other and digging holes fails with nothing to take its place
He who has the gold makes the rules and as the realty of the false wealth from property dawns on Australians we will seen power move from the landlords to the tenant a and that that's the kicker for rnt as they focus on the tenant

And this is a market worth fighting for $34Billion per annum declared rental income ( ATO 2012 ) with rental management fees in the order of $3Billion
On the size the market

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