australia headed for the perfect storm, page-14

Duicorp,
this is only so if other factors are attractive, but never when we are about to be hit by the factors(perfect storm) I mentioned.
The property market flourished under the Howard Govt and the early years of the Rudd Govt because we had strong growth, low unemployment, and Australia was able to compete due to a low dollar and a relatively low cost labour force.
When people fear for their jobs and start seeing their super/savings get trashed , the last thing on their mind is investing in overpriced property in Australia.
Lastly, both sides of politics are considering the wisdom of making it so attractive to invest in property with negative gearing and the 50% break on capital gains tax.
Effectively, you have those poor bugger$ that are renting subsidising property investors.