simple exercise in understanding house prices, page-12

thanks,

this is just like stocks but in slow motion.

when brokers say BUY stock XXX people start moving in and the price surges..

no different to the government saying buy housing (with all their tax cuts and advantages to those who take it up)

then you get to a point where everyone has jumped in, price levels off, which its doing now.

Then what happens is brokers stop recommending stock XXX as its passed fair value or over valued and the price corrects.

Will the government also signal stop buying property by removing CGT and negative gearing in the near future?

will be a great way for them to generate more tax revenue!!!