Property market to remain tight after the budget?

Discussion in 'Property Market Economics' started by Simon Hampel, 14th May, 2008.

Join Australia's most dynamic and respected property investment community
  1. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    12,394
    Location:
    Sydney
    From: Lateline Business - 13/05/2008: Govt spends on infrastructure to boost productivity

    Surely this is going to have an effect on keeping prices buoyant - even if interest rates remain high, and also driving up rental prices even more ??
     
  2. Jacque

    Jacque Jacque Parker Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,652
    Location:
    Sydney
    I believe it will definitely affect the rental market- more rises to come.

    As for prices, however, it remains to be seen. I'm assuming more migrants arriving on our shores would rent first, before building up deposits and income histories for house purchasing. 31,000 isn't a huge amount either, especially if they're spread over all states.
     
  3. D&K

    D&K Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    198
    Location:
    Canberra
    "Boosting" by 31,000 skilled persons (plus thier families) is an increase over current levels isn't it? Not the total. Sounds fairly big and it definately won't ease the pressure on rents that's for sure.

    Dave
     
  4. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    12,394
    Location:
    Sydney
    Yes - at least 15% increase I'd say ... significant enough when most rental markets are already in the 0 - 1% range!!

    I'm not saying don't bring more people in - I'm a strong believer in a larger skilled population (within reason) making us more competitive in a global market ... I'm just saying that the government needs to consider that housing affordability is not going to get better any time soon.

    I'd suggest some form of tax breaks for long term investment property holders (to encourage more rental accommodation onto the market while hopefully avoiding speculation or driving up prices).
     

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia