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Beware of house price corrections, warns ANZ chairman

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Australian Broker | 04 Sep 2014, 07:29 AM Agree 0
Speaking at the British Australia Chamber of Commerce, David Gonski said home buyers and investors mustn't be so optimistic about capital gains
  • SEQ BRoker | 04 Sep 2014, 10:07 AM Agree 0
    Come on David!. Okay so we likely wont see 100% increases in house prices every 10 years like what has happened historically in cap cities in Australia since records began. But given the inflation rate of 3% per annum (average) and where house price doubling is an effective compound rate of 7.2%, the actual figure will be somewhere in between those two. For long term investors bricks and mortar will always be a winner because of that alone, aside from numerous other factors. Have a look at corrections. Last decent one was because the government was offering $21k incentive which artificially inflated price. I dont see no artificial inflation, just price increase due to demand which is congruent to normal increase in price.
    When are one of you economists going to write something like, "well, we havent seen any decent growth in property for a number of years - expect some!". Which was the case up until last year. You have been schooled.
  • Colin Rice | 04 Sep 2014, 11:01 AM Agree 0
    Population continues to increase (combined with money being cheap) therefore demand for housing continues aka supply and demand. Where are the fundamental underpinnings for the authors comments?
  • Incognito | 04 Sep 2014, 11:04 AM Agree 0
    Tax breaks are propping up the housing market.

    If so it's a rediculous entitlement.

    If not then remove the breaks and help the budget.
  • Stomper | 04 Sep 2014, 11:42 AM Agree 0
    No SEQ Broker. He has been OWNED! Good work!
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