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Rental yields hit record-low level

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Australian Broker | 19 Feb 2016, 06:24 AM Agree 0
Rental yields currently sit at record-low levels after rents failed to grow at the same pace as house prices over the past decade
  • SEQ Broker | 19 Feb 2016, 09:50 AM Agree 0
    Okay Mr Morrison. Take note.
    Low rental yield means investors are taking a hit, changing Neg gearing my be the straw that gets them to sell up.
    Once you see investors leaving the resi market, and you will if ROI is not there, you will see a glut of cheap property as prices drop. Who does this hurt, not the investor but the home owner. They cant sell or upgrade because they have no equity meaning the real estate industry cops a hiding. Bye Bye Jobs.
    Moreover, I can tell you from experience once prices drop valuers are super keen to compare 8 star energy efficient beautiful new homes to fibro shacks with the same number of beds and baths. So Bye Bye building industry too. Neg gearing wont make a lick of difference if values dont work. So Builders, Construction workers, admin etc jobs all gone too.

    Message - dont mess with the system.
  • Papery | 19 Feb 2016, 05:37 PM Agree 0
    Has anybody been offered a rent cut lately (excluding the unfortunates caught in the mining town dolldrums).
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