Domain has released its latest rent report that delivers damning numbers for tenants and has infuriated our team whose simple solution to the housing and rental crisis has fallen on the government’s deaf ears for over a decade. While tenants across the country feel the pressure of rising rents and the anxiety-inducing battles to secure…
Domain has released its latest rent report that delivers damning numbers for tenants and has infuriated our team whose simple solution to the housing and rental crisis has fallen on the government’s deaf ears for over a decade.
While tenants across the country feel the pressure of rising rents and the anxiety-inducing battles to secure a roof over their heads, our own Mal Cayley saw this coming over 10 years ago and says the core issue is property supply and that developers and investors need to be seen as the solution, not the enemy.
“We need 70,000 rental homes now across the country, which is effectively the size of Newcastle, to bring rental demand to a balanced market. Then we need to keep up the supply to ensure we don’t end up here again.
“For too long investors and developers have all been painted with the ‘greedy’ brush, but we need to remember that the majority of investors are mums and dads, couples and the average Aussie who wants to improve their future, who at the same time take pressure off the superannuation and retirement system,” said Mr Cayley.
When considering planning schemes, policy, taxation, rates and lending regulations, Mr Cayley says all this is actually contributing to homelessness rather than protecting our community.
“The difficulty in securing loans for property investments and the stack of additional fees in order to hold an investment property on top of changing rental laws and more government policy is seeing current property investors sell and leave the market, and new potential investors are fearful of entering the market so there are fewer rental homes available while at the same time, we’re seeing increased demand so it’s no wonder the pressure is unbearable.
“Government-supplied housing will never be enough to house the number of renters, in fact, they only help about 10% of renters, so the other 90% or 7.5 million renters rely on private landlords, mums and dads who are taking a chance on funding their retirement rather than rely on the government. Social housing and ‘build-to-rent’ are fringe schemes but are not the solution, we need increased supply in all property types which has to come from developers and investors,” explained Mr Cayley.
With a background in military intelligence, Mr Cayley now uses his research, analytical and forecasting skills for his work in the property space and has publicly shared his insights for many years hoping those with the power to make change would heed his advice.
“I was hopeful that we might see some positive change when my research report was tabled in parliament last year, and endorsed by demographer Bernard Salt, but alas I was once again disappointed in our elected leaders not having the courage to do what their profession requires of them,” he said.
Mr Cayley’s unique approach to analysing data has seen him accurately predict outcomes long before others but his outlook isn’t optimistic.
“Without a radical plan to change from every level of government, we need a revolution from the people. We need to get angry now because once tent cities are commonplace – they’ll likely be an accepted form of living by the 2032 Olympics – then tensions will boil over into social unrest and rioting. Yes Australia, this is what a decline in housing will do,” implored Mr Cayley.
“Sounds crazy? That’s what people called me when I said we would have a housing crisis now, 10 years ago. Few believed it then, but you’d be hard-pressed finding someone now who’s not impacted by it now and accepts my predictions of tent cities by the Olympics. It’s just those who can make the change, our elected officials, denying the uncomfortable truth.
“Growth predictions have been too conservative, housing supply has been constrained and not meeting targets, and governments at all levels have been looking the other way or coming up with pretend and weak solutions that only serve to help them through another election.
“We need real change now or face dire consequences, there’s no other way to put it,” said Mr Cayley.
What it means for property investors is certainty, security, capital growth and rental yield because we haven’t got enough supply.
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