"With inflation moondog I think you come out negative so in reality you lost money investing in a term deposit! "
Because of various factors RP has been the best performing asset class of the last decade (actually the last two decades, but mainly on the back of the last ten years). these factors are:
1. Cheap credit sourced offshore by our banks and lent very cheaply to Aussies.
2. A tax system which encourages speculation via negative gearing (a subsidy on "investor" losses) and short term oriented CGT rules, which ultimately PUNISH savers (the poor) and incentivises speculation in assets----> which do not bring economic utility.....[GOVT]
3. Generous first home owner grants to subsidise housing [GOVT]
4. Inelastic supply due to insufferable red tape in the supply of new land [GOVT]
5. A continued stream of money to the RMBS market [GOVT]
Anyone who has made a bucket of cash in RP seem to think they are investment gurus and have an inherent understanding of residential property. Too smug and stupid to realise they were just born at the right time and had these FIVE factors working for them, most of which are essentially govts. susidising housing which artificially inflates prices.
You yourself tcisboss were criticising handouts to the poor and what not on here just last week, without actually realising your property gains are in large part the direct result of similar [less obvious] handouts, not your inherent genius.
