"Milesg, Perth is still booming because of people coming from the Eastern states, I think this is what is propping us up now. Sue12"
I think it is just the mining boom. But already we are seeing signs that we have hit the top of the cycle. Won't be long before demand for mine workers will decline and there will be unemployment and downward pressure on wages, particularly with this new IR legislation. Higher interest rates and downward pressure on wages. Rents are not likely to go up anytime soon. The return on money in houses is just not there and won't be till the economy bottoms and starts up again which could be about 5 years away.
By the way the ideas for this new IR legislation came from execs in RIO, a mining company who wanted to lower the cost of production in accordance with downturns in the cycle. They are now key advisors to the Howard government.
