rba has plenty of stimulous for housing, page-12

  1. 11,875 Posts.
    and a few more things booz

    the Japanese stock market and property market were both bid up to crazy levels and have been falling for ages now, the nikkei from about 35,000 to 10,000

    I cant comment on fair value of Japanese shares, but property over there is cheap on a yield basis - but their advanced ageing population is causing that no doubt(maybe you should factor our ageing pop. into your equations of where prices will go). They may have to open the door to immigration to solve that problem

    Once sentiment changed on property/shares the Japanese became savers even though the banks only pay out a tiny % interest and they invest OS to get a better return - the irony of that is they are inflating bubbles overseas

    If property becomes on the nose here, the yields on term deposits here could become very attractive, people may start cashing in their houses for something with a better return -looks like that trend may have begun

    sure population increase and neg gearing support house prices, I don't argue that notion whatsoever, but if we have rising unemployment in a debt saturated market (and ours is really bad) neither of those will matter at all.

    Also who the heck wants an investment strategy based on a tax break that many influential people(Ken Henry for one) are calling an end to



 
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