John McGrath knows a thing or two about price collapses given his recent cataclysmic listing of McGrath Real Estate has investors down -54% in a few months:
…so perhaps we should listen to him today at the Herald Sun:
“This is a not a political statement. But Australia will go to bed one night and wake up on July 3, and someone’s property will have gone from being worth $600,000 to $540,000 in value and that’s a horrible thing.
“The other 30 per cent of people (who are not owners or paying off a home) are tenants will be in trouble too. If they think the current supply is short it is going to get worse and landlords are going to be focused on getting better returns as the CGT will be of less benefit so negative gearing will no longer be a deduction so rents will rise.
“Property prices will drop materially and rents will skyrocket materially, and whether or not that’s 10 to 30 per cent, only time will tell.”
…Mr McGrath said the impact will be far greater than just on industry participants, the group is concerned for their customers too, be they tenants, landlords, buyers or sellers.
Nah, let’s just put this down to another round of ruthless spruiking by a guy who just destroyed his own investor’s savings.
