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.
Not only could that create some insanely high valuations in this particular area of biotech, but it could also create some really mind-blowing health treatments over the next decade. I think 2022 will be a big year for all three of these ideas.
How about a stock market crash? Followed by another multitrillion-dollar rescue program?
The problem is most people — including most economists — have only the vaguest sense of what’s going on with the land cycle.
Still, with the mega boom of new accommodation, Tim Toohey of Yarra Capital says it will result in an oversupply of new housing by 2023.
Queensland Treasurer, Cameron Dick, has moved to close one of the loopholes many property investors use to dodge hefty land tax bills.
In fact, it’s hard to get excited about much in the short term. My read of the market is that most stocks are flat.
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