housing association news just out.........jump in steel prices adding an extra $2000 to the cost of building........plus the petrol price for transport... reinforcemnent steel prices have jumped 60% in past 6 months......china not exporting , need it for their own buildings...............and cost of concrete , between 3 and 5 tonnes required to build a 3 bdr single story dwelling......and steel at $700 tonne.......... add in interest rate rises and above costs will make it harder to speed the recovery......well harder for them to build new affordable homes to compete with the existing homes and the shortages........... I know I am bullish on property........but my argument they will not fall over across the board like the US and UK.....is still sound........its not differenct in AUS, but we have shortages.........does anyone really think existing prices will go down, with rising costs going skywards? PS I would be talking to the ATO straight about borrowing for a superfund........ after reading TAxpayer alerts TA 2008/5 and get it right from the horses mouth cheers have put a buy on housing now
