This assumes that – the new buyer will leave it vacant, is an immigrant or newly entering the housing market thru divorce or leaving home.
Of course in most cases he will be a previous renter – one leaves the market one enters -number stays the same – so where is this pressure build up going to come from.
Another scenario – investor unloads -new investor buys – one renter in – one out – again where is the pressure to drive rents.
This one needs to be dumped in to the "doubles every seven years" (may happen to some property but among my many investor clients most will be lucky to double in 15)
Myth Buster – Your statement would in the face of things actualy make sense if only the population would remain static. But then we know it doesn't does it. Which ever way it pans out the demand for rentals will increase.
and your statement,
This one needs to be dumped in to the "doubles every seven years" (may happen to some property but among my many investor clients most will be lucky to double in 15)
All I can say to that is, thank god you're not advising me or my clients as most of mine have done way better than that.
I have found the rule of 72 to be quite accurate over the years.
Jon, what if we move towards a recession and the building industry etc slows (even more) and our many 417 Visa workers go home, will that also drive up rents ?????
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