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Selling out Australian home buyers to China : Comments
By Dan Denning, published 1/4/2010RBA governor Glenn Stevens has told anyone who will listen that speculating on house prices is crazy.
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The incentives that were hastily put in place called "stimulus" were for insulation in the roof and by association the repairs to the ones that have burnt, school buildings, wanted or unwanted, and other forms of infrastructure but which all supported almost exclusively the building industry.
Then the shortage of homes due to excessive migration, planned or unplanned, the lifting of restrictions on overseas, that is Chinese buyers, have all subsidised just one group.
Why? Has this been a fop to the builders and therefore the unions prior to an election? Now that's a cynical thought but probably has more truth to it than one imagines. And, of course, it is highly visible, warrants substantial media cover, ad nauseum and is seldom out of the news.
It is difficult to see the excessive conerage on auctions on TV with the large numbers of hopeful buyers trying to make a bid. There have been occasions during such coverage that the only bidders were Chinese. As this article says, no one wants a falling housing market on their watch.
So if you want to sheet home the blame for the inability to be able to buy a home and to now spend the rst of your life paying rent (as houses do not come down in price, ever) then it is just another example of poor policy, again with serious ramifications for Australians, the losers in all this.
The current government is lucky that they have such a knave in Tony Abbott who could never ever be considered as a serious bet for PM. The mistakes that have been made in this case affecting generations to come as they never ever realise their dreams of owning a home, the reason for which few people had made the government's connection.
This article by daily reckoning clearly makes that point.