monday movements, page-3

Monday, another week. End of quarter window dressing, at least according to theory.

Well I hate to say "I told you before". A few weeks ago, we have some heated debate about the our property market. I pointed out based on my personal experience, research and telling of my friends and networks, that foreign buyers is the key driver to skyrocketing housing price.

Well, here is a link to support my research. I proud to say first hand information is most valuable.

http://www.smh.com.au/business/foreign-buyers-inflating-market-20100326-r378.html

I am not against foreigner ownership of our houses. The problem is our market is small. The price could be easily pushed up or down by extra demand or supply. Here is what happened. (another great labor government job, like insulation scandal)

1. Relax foreign ownership rules;
2. House become unaffordable;
3. Hand tax payers money (It is our money, you and me) to first home buyers;
4. Early foreigners sale, and pay NO capital gain tax.
(Foreigners are exempted from capital gain tax. Strange taxation low.)
5. In the end, the house become less affordable.

What a wonderful world!