‘Interest Rates Are Rising — Property Prices Must Fall!’ Really?
You can’t have a more one-eyed view of the property market than the economic narrative currently dominating the conversation in Australia right now.
Australian Housing Market
When you read articles about Australian housing affordability, it is often comparing the single average adult wage to house prices, from generations ago.
The articles generally say something like, ‘a house was worth three times the annual average wage back in the sixties and is now worth 10 times the average wage. This shows housing has become unaffordable.’
You can’t compare the two because back in the sixties it was one wage bidding on real estate.
Reaping the Whirlwind
While farm output prices have risen, farm input prices have risen even more. The Consumer Price Index in the US is rising at an 8.5% rate. But the ‘agflation’ rate — fuel, fertiliser, and animal feed — is going up at almost 30% per year.
The Real Estate Investment You Should Avoid at All Costs
In recent weeks, I’ve been contacted by several owners wanting advice on selling apartments that have lost significant value since construction
Labor’s Housing Policy: LOL
Right now, the biggest criticism of the Labor Party is that nobody can tell a damn difference between them and the Liberals. They just revealed that, as far as housing policy goes, the critics are right.
Australia’s Jingle Mail Tsunami Will Swamp the Banks, Not the Borrowers
You might think the prospect of Australia’s housing bubble finally popping is bad. But just wait till you hear about the jingle mail tsunami coming for our banks.
The Federal Election, the Great Australian Dream, and Nature’s Free Lunch
The real Great Australian Dream is to own an investment property or two and get wealthy from the so-called ‘capital gains’.
