Rent again

I saw a recent ad for a flat on a real estate agent's website.

Maintenance free, unfurnished two bedroom unit. Suit busy city worker or young student.

And the price? $340/wk.

By my reckoning, based on Aus-study/student allowance rates, you'd have to cram about 8 young students in there to raise that price.

And people over commit themselves financially to an investment property who's current, and more disturbingly, future value is assured by the same people who think students can afford $340/wk rent.

Just how out of touch with reality are the real estate agents?

A note to the investors. Your property isn't worth squat if no-one but a heavily subsidized Government employee can afford to pay the rates you need to charge to cover the highly over inflated price you paid for your properties.

Darwin's current "boom" is being heavily subsidized by the Northern Territory and federal Government's. That is, subsidized by ordinary local tax payers who are consequently being squeezed out of Darwin by the few property investors who have the means to cash in on the Govt spending spree.

Robert Fyffe.