Australia should not follow the lead of one of the world’s most famous cities and introduce a rent cap says Louis Christopher

Australia should not follow the lead of one of the world’s most famous cities and introduce a rent cap, according to a prominent property analyst.

Berlin has become the first city in Germany to impose a rent cap, but SQM Research managing director Louis Christopher said a similar scheme wouldn’t work in Australia.

“I don’t think these things can work in the long run. In terms of putting rental caps on the market, participants will simply find a way around it,” Mr Christopher told Residential Property Manager.

“The marketplace needs to be respected. It’s the most efficient way of delivering a service, and if we start putting in rental controls it’s going to distort the market.”

Mr Christopher said Australia has always had periods of fluctuating rents, and that currently there are no areas experiencing crazy rental growth.

Indeed, there are areas where rents are falling, which proves that the market works, he added.

Mr Christopher said the solution to stabilizing rents is to increase the supply of rental properties.

“Bringing down the break-even cost of developing property is probably the best way of providing flexibility on the supply side,” he said.

“The amount of taxation that’s involved in property developments is crazy. It’s through the roof and it makes it very, very difficult for developers to buy and develop quickly.”

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Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
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