Discussion in 'Wealth Creation & Management' started by SpacePete, Nov 29, 2014.
Very different population demographics. Australia is still in a population growth phase.
yeah and Australia has such a limited supply of land and an enormous population
nothing like Japan
Plenty of land... but not near centers of employment or essential services. That's why growth pressure, and hence price pressure, is focused around the major cities rather than being evenly distributed across the nation.
I'll take the impact of interest rates over your 'growth pressure' any day.
Let's see if being close to essential services keep prices going up if interest rates double.
For me staying out of debt is very important. I like being able to purchase something that can be built up as an asset a little at a time without going into debt.
At the moment the wife and I are not in a position to buy a unit/house yet (still renting) but im buy what silver i can while its good (investing long term) but the tough this will still be saving for the 20% deposit require to purchase a unit/house ???
Cheers, HAPPY STACKING
Which means you wont go broke..... but you'll never be wealthy.
Well This article was raised in another similar thread and I think it will add to this interesting topic http://www.9news.com.au/national/20...buyers-around-the-nation-as-house-prices-fall
This article suggests that wages and the downturn of the resource sector as the reason behind the current drop in house prices.
'Wages are now barely keeping pace with inflation and are well behind the home price growth in the country's biggest cities.''
''Local economies also play a vital role in keeping house prices down with Queensland, Western Australia and Victoria, still affected by the downturn of the resource sector.''
If this is true It could potentially become worse...
"Unless there is an offsetting rise in production, then Australia will -experience an 'income recession'.
''Australian Bureau of Statistics data on Monday showed wages and salaries rose just 0.4 per cent in the September quarter, the smallest trend increase since the same quarter of 2009 when the economy was last battered by falling iron ore and coal prices.''
"The declining terms of trade equates to Australia receiving a 'pay cut' from the rest of the world for what it produces,"
''The figures showed that profits in the mining sector the number one driver of income growth during the boom years fell 5 per cent in the -quarter, extending a 16 per cent plunge in the previous three months''
''iron ore that generates $1 in every $5 of exports.''
So my thought is this. Are we in a unique situation here, where it is in the Australian Governments interest to grow and maintain the Australian gold mining industry and all other entities associated with gold, a quick search tells me that Australia is the second largest gold producer. A fall in gold exports and other PMs exports will lead to a trade deficit which will then harm the Australian economy consequently hurting house prices?
Much better to support an under priced productive primary industry than one of service which has been over inflated and is both at the mercy of tenant/morgtagee income in a resource economy, and at risk of foreign ownership.
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