Lower Australian dollar to inflate Sydney and Melbourne house prices; Lower AUD makes property cheaper for foreigners and could increase the bubble prices being paid
Tweet Topic Started: 4 Sep 2015, 10:51 AM (3,129 Views)
That's me Newjez - Like Chucky said: "I'm Back!" - For better or for worse.
And a bit more annoyingly so today than usual I guess - Having taken a full day off from playing "Bob the Builder" on a recently purchased IP - To have a bit of R&R at home.
Hey, did you hear the one about what they called Bob the Builder after he retired? :
"Bob"
Oh well, never mind; My niece thought it was amusing when she was nine ...
I'll try it on my nine year old.
Surprised John Frum hasn't joined this thread, it is his antithesis.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
I think this may be true for the upper end of the market (+$4m). And expats will be more active than foreign buyers.
I remember the AUD falling to 0.47 in 2001 - and it was followed by a pretty strong surge in Sydney house prices in 2001-2003.
Much more supply this time a around. It may keep it in check.
The 2002-3 boom was largely due to (a) change to CGT from Howard Government, (b) low interest rates due to prolonged drought and (c) mining boom slush money. Of these (a) is way the most significant. Any currency effect is ambiguous but the timing doesn't look quite right. What was the AUD at end 2002?
Surprised John Frum hasn't joined this thread, it is his antithesis.
Well I missed this little pearler newjez.
In a similar fashion to the way the bulls mock how bears latch on to any piece of slightly disconcerting economic news as "a sign", it's going to be equally funny hearing of all the little head-fakes that promise to revive the property market's fortunes as we prepare for the way down.
In fact i think I'll start a thread on it...
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
And in the other capital cities it would be far worse for them...
Risks: > Buying into a long running bull market is risky, especially when most people are priced out the market > Mining boom has ended, unemployment is rising
Maybe they are banking on further rate cuts but these would push the AUD even lower...
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