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RE: Morgan Stanley Warns of Waning Chinese Investment, a Major Aussie Bank Stress Tests a 30% Property Crash, and Delusional Economists Expect an RBA Rate Hike - Australian Property Market Update for Week Ending 6 August 2017
Thanks Lucky. To the degree that it reveals that home price growth over time always re-aligns with consumer price inflation (and wage growth) then yes, I think we can.
There's much more demand for housing in Sydney and Melbourne due to the concentration of jobs and immigration growth in those areas, but eventually, either home prices must fall or wages must rise. And like I said in the post, I'm not convinced the RBA has the power to lift wages in the current world economic landscape.
Thanks for the comment. I had initially mentioned the 2% decline as a reflection of true Australian industry since we have a lot of commodities orientated business going on here. However now you have pointed out some true "industry" - immigration. It seems to me a lot of immigration is in the education tourism sector. I know a couple here, now they are driving Uber. Headshake, according to my reviews Uber pays too little, therefore car depreciation cannot be compensated. I haven't told them yet, don't want to mess up their day.
Yes, good point. Eventually, the end of the mining/commodity boom will impact all of Australia. Unfortunately, we keep spending like the iron ore price is $180.