Yeah, in NSW a freehold house with normal block, once you bought and paid your stamp duty fees there are no more taxes to pay unless it is an investment property that goes over a threshold. Basically all that's left after purchase is Council and water rates of around $2500 a year and your other utilities. No capital gains either for your principle place of residence once selling. Not asset tested for the Government pension either if it is your principle place of residence. It is essentially the only tax free asset left. In Australia you can live in a $5 million house and if you have no other assets then you and your wife can get a full, free government pension. If they lived in a $1 million house and had $4 million in the bank they would get nothing. Some people intentionally tie up all their money in their PPR just so they can qualify for the free government pension. Maybe that is pushing house prices up too. I watched Alor's video on Point Roberts, very interesting that. On the Canadian side the houses were worth $2 million on the USA side the houses were worth only $200,000, something I can't quite get my head around, just a few meters makes such a difference.
Will this push rates higher to soak up liquidity or will it push rates lower as there is too much liquidity?
100% correct The end of cheap money. Bye Bye million dollar properties really only worth maybe 250000 if it catches a bid. See you later all the Audis Mercs Beemers fuelled by cheap money. I'm old enough to remember 20% interest rates. Stock Market... Timberrrrrrrrrrr
https://stockhead.com.au/news/great...ank-forecasts-are-crucial-for-stock-investors What they're saying is you can't have constant inflationary pressure if demand, or more accurately, the capacity to satisfy demand is absent.
They are buying their own bonds and injecting money into the stock market by taking bad debts off big financial institutions. They want to push the horse further down the road before putting the bullet in its head. I do not see a crash coming any time soon while everyone is allowing them to rig the game like this. Everyone sees their bank accounts going up, cheap loans, its party time. It is going to take some sort of war or large country to step outside this and say "No more" for it to end. Or an actual physical constraint.
