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RBA surprised by housing weakness

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Australian Broker | 15 May 2012, 02:30 AM Agree 0
The RBA has expressed its shock at the low level of home building over the last year
  • Forgotten Australian Family | 15 May 2012, 09:02 AM Agree 0
    Since 2008 I have been trying, on a disability pension and what little I inherited from my mother, to build my disabled child a granny flat. There is not one government grant, not even the one there used to be ten years ago, by which my ex-partner obtained a rural home. We are not eligible for the State Govt construction boost, even if I sell the property to my child for a small amount, as there is a rule against doing this. Why does anyone in government expect people to build accommodation when everything is stacked against us? I've spent four years searching for assistance, I know there isn't any.
  • Ross | 15 May 2012, 09:04 AM Agree 0
    Is the RBA for real? The housing market has been in serious trouble for the last 2 years with most of the decline attributed to high interest rates which the RBA has a large stake holding in.
    For the deputy governor, Philip Lowe, to express complete surprise a this growing disaster is absolutely astounding and displays for all to see the ineptitude of this organization. The 'ambulance at the bottom of the cliff ' attitude shows quite clearly that the RBA has no relevance in Australia's financial well being.
  • simon kranky | 15 May 2012, 09:10 AM Agree 0
    SURPRISED?!! hang on a moment. First we had the US debt crisis fueled by poor lending on mortgages. Now we have an ongoing crisis with whole European economies sliding into the abyss. Shares ( some of the them losing more than 50% ) are currently slipping better than a fairgrounds slide and its a 'SURPRISE' to the RBA that people are hanging onto their money and decreasing their debt levels?!!.. Anybody want to buy a new unit in Canberra at the moment?? yeh right!!!
  • Clive | 15 May 2012, 09:25 AM Agree 0
    As a small builder in NSW who for the last four years have been struggling, I am now in WA working away from my family to make ends meet, it makes you wonder what the RBA figures they are looking at, they should take a drive through the small factory areas and see what impact they have done to ALL small businesses in the name of slowing the mining boom, like Nero fiddling while Rome burns
  • Lex | 15 May 2012, 09:33 AM Agree 0
    I am in the business of designing buildings; for the last four years work has been sparse; ticking over would be considered a good position. Owing to problems in Europe, USA, poor super returns, our high dollar and overly high interest rates, is it not any wonder that the construction industry fell over. I have no reason to believe this will change anytime soon; if anything it will take years. One bright light on the horizon for me are designing apartments; they are affordable for everyone.
  • Swavek | 15 May 2012, 09:38 AM Agree 0
    Surprised? They kept HIGHEST interest rates in the world and run everybody off their feet down to ground...... seriously, who would believe that rubbish?
  • Julie | 15 May 2012, 10:08 AM Agree 0
    and to make matters worse Swannie has taken away the 50% CGT discount for non-residents and will only honour the discount up to 8th May IF they get a valuation at that date. This is sure to help the housing industry NOT.
  • Barry Rutherford | 19 May 2012, 11:38 AM Agree 0
    Why would anyone want to build a house or building right now? When prices are going down or at least stagnant. Anyone with a even a small amount of nouse would foresee that Europe is going to be crippled for sometime with its Marriage to the Eurodollar. A Marriage in which all the partners were never in total agreement from the start. Event if they did were in agreement to the Marriage their countries had so many cultural and economic differences, that living in harmony was nigh impossible. as well they were all historically on differing levels of commercial/industrialisation. That is as it should be. If everyone was producing goods and consuming these like Germany and the United States were consumption outstrips the natural supply of resources.
    So the question is given that interest rates are higher here than western equivelent why would a builder risk money in speculative housing unless their is clear demand for that housing. Most of the demand is for low cost housing So there should be a moral imperative for someone to build more low cost housing. Government assisted.
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