Worth a read:
Quote:Australian first home buyers today face an environment where houses prices, relative to incomes, are twice as expensive as those of their parents. The average house price in most capital cities is equivalent to more than seven years of average income (up from roughly three times income for the previous generation).Several important factors (in addition to lack of land supply) are generally considered responsible for housing affordability issues in Australia. These include rapid population growth, irresponsible lending practices, and government tax policies. In particular, high immigration recently resulted in an Australian population growth rate of around 2% (roughly twice the global average).
Full article is here: Australia's Property Bubble?
Quite a balanced article. The author presents a good case for and against. I'm leaning towards an extended period of flat house prices (down a bit in real terms). If the government intervenes again it could easily go the other way.
NoCredit wrote:Worth a read:Full article is here: Australia's Property Bubble?
Quite a balanced article. The author presents a good case for and against. I'm leaning towards an extended period of flat house prices (down a bit in real terms). If the government intervenes again it could easily go the other way.
Excellent article! Spot on!
NoCredit wrote:Worth a read:Full article is here: Australian Property Bubble?
I think the first signs of collapse are here – i.e. government trying to prop up the market with a fifth pillar!
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……..Here's a silly story.
Consider we have oafey slow thinking do gooder ideologues in the RBA and Fed Govt who finally realize affordability might be an issue.
So the RBA decides it will now consider asset price inflation in setting the cash rate.
Hmmmm……ok, so house prices too high -> raise rates, even if conventional inflation is within the target band.
Hmmmm again…..that decreases the amount buyers can borrow, and increases the cost of building new stock. Population growing at 1.5-2%pa.
Housing supply drops below 30,000 per qtr. Hmmmm indeed.Read the rest on this thread…..
https://www.propertyinvesting.com/forums/property-investing/general-property/4334669
Interesting article thanks for posting it
Thanks for sharing the article. Latest warning is coming from The Economist:
http://www.economist.com/blogs/freeexchange/2011/03/australias_house_prices
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