Posted to The Age (15/4/2012) on 17/4/2012 at 3:16 AM
Commenting on "Feeling weak"
http://theage.domain.com.au/real-estate-news/feeling-weak-20120414-1x0g2.html
I have written on many occasions, and still believe firmly that the real estate market will not see an upswing until March/April 2013.
The Labor Federal Government, especially Julia Gillard and Wayne Swan are still far too indulged in budget surplus. This is an absolute nonsensical strategy, which basically means collect more money from the people of Australia and cut spending on the people. They cannot have the cake and eat it at the same time. If the surplus money does go back to the people, the budget should be a neutral one - no surplus or deficit.
It is no point to squeeze blood out of rock, the already heavily debt-laden Australians who are facing employment uncertainty. What Australia needs is trade surplus, getting more money to fill the coffers from external sources.
All these create enormous uncertainty for business and property investors, which can lead to further economic downturn especially those states that are not involved in the mining industry.
Australians must also take the blame too by spending more and more on online purchasing from overseas, and swamp the every corner of the Earth creating an outflow of money to other countries. This adds to the burden of trade deficit.
Do not ignore Harvey Norman, David Jones, Myers and the car industry complaining about poor performance in sales. These are the siren warning about disastrous staff sacking, which in turn sets out a chain reaction affecting all other service industries.
Downturn in real estate industry affects a lot of related industries, and the negative effect feedbacks to the real estate loop. Many young people are living like there is no tomorrow; true if they keep sipping coffee the travelling overseas, their hope of owning a house is just pie in the sky.
Commenting on "Feeling weak"
http://theage.domain.com.au/real-estate-news/feeling-weak-20120414-1x0g2.html
I have written on many occasions, and still believe firmly that the real estate market will not see an upswing until March/April 2013.
The Labor Federal Government, especially Julia Gillard and Wayne Swan are still far too indulged in budget surplus. This is an absolute nonsensical strategy, which basically means collect more money from the people of Australia and cut spending on the people. They cannot have the cake and eat it at the same time. If the surplus money does go back to the people, the budget should be a neutral one - no surplus or deficit.
It is no point to squeeze blood out of rock, the already heavily debt-laden Australians who are facing employment uncertainty. What Australia needs is trade surplus, getting more money to fill the coffers from external sources.
All these create enormous uncertainty for business and property investors, which can lead to further economic downturn especially those states that are not involved in the mining industry.
Australians must also take the blame too by spending more and more on online purchasing from overseas, and swamp the every corner of the Earth creating an outflow of money to other countries. This adds to the burden of trade deficit.
Do not ignore Harvey Norman, David Jones, Myers and the car industry complaining about poor performance in sales. These are the siren warning about disastrous staff sacking, which in turn sets out a chain reaction affecting all other service industries.
Downturn in real estate industry affects a lot of related industries, and the negative effect feedbacks to the real estate loop. Many young people are living like there is no tomorrow; true if they keep sipping coffee the travelling overseas, their hope of owning a house is just pie in the sky.
