Rentals mayhem
Over the past week there have been articles with subjects ranging from renters moving into tents, living in their cars, checking out defunct student digs, and landlords advertising squash courts for rent as places to live...among others.
With population growth running at record highs of around 500,000 per annum - and with a rapid-fire 325 basis points of monetary tightening already having been delivered - it's surely gotta be time to reboot the lending settings and remove the nanny state assessment buffers.
Instead of responding, the rental supply is actually declining as most prospective landlords can't service under current policy settings.
Build to rent launch
In other news, as expected Mirvac reported in its ASX market update a 62 per cent drop in net profit for the December half-year, as demand for new property has plunged.
Overall, new dwelling supply in Australia is set to drop away over the next couple of years.
Interestingly Mirvac has delivered a couple of build-to-rent projects to the market over the past year, including one tower block in Olympic Park in Sydney.
Research from Charter Keck Cramer showed that the cost of renting a 2-bedroom unit therefrom is 27 per cent higher than renting from a private landlord...to some degree mirroring what happened previously in London.
