House Price Horror Australia 2020
Channel: Daily Insight
Date: 19/11/2020

“First-timers pile in as house prices start to rise. Record numbers of first-home buyers are entering the property market, encouraged by ultra-low interest rates and unprecedented federal government incentive schemes that include a grant of $25,000 and another where only a 5% deposit is needed to qualify for a mortgage”. “ANZ scraps its ‘too pessimistic’ house price call. ANZ has scrapped its forecast for a pandemic-linked 10% drop in house prices and says a jump in sentiment based on stimulus measures and record-low interest rates will curb the decline, and could even result in “modest” price growth this year”. Argh! As you can tell from recent “top stories”, rising house prices are often seen as a good thing in Australia and are usually heavily publicised. From the Government’s standpoint, they see this as a “success”. They see rapidly rising house prices — rises much much greater than the cost of living — as some kind of validation of their polices, even though high house prices don’t actually help most of us. If you’re a property investor, sure, you love when house prices go up. Both federal and state governments, of course, don’t want prices to slip. They can generate more fees and taxes from higher property prices, allowing more money to flow through to government coffers. The big banks don’t won’t property prices to go down either. Their entire business model relies on people getting into massive debt. The more debt, the better! So whenever you hear a politician say that they’re all for affordable housing, don’t believe a word of it!

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IMAGE RIGHTS
Australian Prime Minister Scott Morrison and Australian Federal Treasurer Josh Frydenberg, AAP Image/Lukas Coch.

OUTRO MUSIC
Fortress Europe by Dan Bodan (https://www.youtube.com/user/danbodan)
 
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