Posted to The Age (10/1/2012) on 10/1/2012 at 11:32 AM (Not published by Newspaper)
Commenting on "More bleak times ahead for housing"
http://theage.domain.com.au/real-estate-news/more-bleak-times-ahead-for-housing-20120107-1ppiy.html
The unreasonable property price rise was a fault of the government policy by introducing FHOG, which indirectly put extra money in the developer's and vendor's pockets from its early introduction. The long term effect is propagated and felt until today.
In order to soften the impact of GFC, Rudd introduced policy in removing the FIRB approval on foreign investment, which unleashed a real estate monster. This policy is now being reversed.
One must not compare our real estate prices with Canada or USA. If so, why does not one compare ours with Hong Kong or Japan? Every country goes through different phases of development and the people value ownership of properties differently.
Investing in real estate is a business and requires business, financial and management skills. Decisions should not be made by looking through a crystal ball or throwing a dart on a special real estate dart board.
Rates and costs are published and well publicised, and buyers have no excuse in blaming anyone for making wrong decisions. The current fall is a painful lesson for investors who were impatient and followed the Joneses, committing to large loans that cause untold mental and financial stresses. For the live-in owners, you have not made any loss at all because you have not sold your properties; their values are just numbers on paper.
Commenting on "More bleak times ahead for housing"
http://theage.domain.com.au/real-estate-news/more-bleak-times-ahead-for-housing-20120107-1ppiy.html
The unreasonable property price rise was a fault of the government policy by introducing FHOG, which indirectly put extra money in the developer's and vendor's pockets from its early introduction. The long term effect is propagated and felt until today.
In order to soften the impact of GFC, Rudd introduced policy in removing the FIRB approval on foreign investment, which unleashed a real estate monster. This policy is now being reversed.
One must not compare our real estate prices with Canada or USA. If so, why does not one compare ours with Hong Kong or Japan? Every country goes through different phases of development and the people value ownership of properties differently.
Investing in real estate is a business and requires business, financial and management skills. Decisions should not be made by looking through a crystal ball or throwing a dart on a special real estate dart board.
Rates and costs are published and well publicised, and buyers have no excuse in blaming anyone for making wrong decisions. The current fall is a painful lesson for investors who were impatient and followed the Joneses, committing to large loans that cause untold mental and financial stresses. For the live-in owners, you have not made any loss at all because you have not sold your properties; their values are just numbers on paper.
