- 3 July 2009
Well the Govt has basically given the real estate sector the thumbs up, no reduction in tax incentives, broadening the access to the first home buyers grants and brining in 700,000 new buyers and their families, why wouldn't the ponzi keep going?Aussies turning bullish on property price? Well there's a surprise, haha.
I am actually in two minds on this.
To me, house prices in this country do not make any economic sense whatsoever; and haven't done since about the mid noughties. Apart from a few niche markets (hopefully one of those is where I have my ppor), I just can't see the economic sense of house prices rising any further "in real terms". And then there is the mortgage cliff, recession and all that sort of thing.
However there is the spectre of inflation, lack of supply, immigration, and the absurd increase of head costs on new property. There could equally be some version of a crack up boom in house prices as well.
Question I always ask myself when considering any trade investment, what is the upside, what is the downside?
I certainly wouldn't gear up into property at the moment, but I do have a lazy few hundred grand in cash that I am trying to find a home for. Popped a few offers in here and there but either expectations are unreasonable or we get outbid.
Aussies turn bullish on house pricesWestpac’s latest consumer sentiment report suggests that Australians have turned bullish on the housing market. Despite ongoing interest rate rises from the Reserve Bank of Australia (RBA), house price expectations have soared, suggesting stronger price growth (chart from IFM Investors chief...www.macrobusiness.com.au
Meanwhile the narrative will keep blaming the baby boomers and everyone in the kingdom is happy, except for those who can't save a deposit to get a seat at the roulette table. 🥳