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Property market to remain tight after the budget?

Discussion in 'Real Estate' started by Simon Hampel, 14th May, 2008.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    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 Team InvestEd

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    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

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    "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 Co-founder Staff Member

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    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).