Posted to The Age (13/12/12) on 16/12/2012 at 1:27 PM
Commenting on "Election the unknown for next year's market"
http://theage.domain.com.au/real-estate-news/election-the-unknown-for-next-years-market-20121212-2b9vu.html
Whichever party wins the election is not the determining factor for the boom-and-bust of the real estate industry. The concern of today is unemployment. The reported unemployment rate is totally unrealistic, and unreliable. To understand the extent of economic misery, all you need is to count the number of For Rent or For Lease signs in busy shopping strips, CBD commercial buildings, and the number of people carrying bags of purchased items in shopping centres.
Gone are the good old days of economic recovery. The wheel of economy stops when people stop borrowing and stop spending. Unfortunately, it is the uncontrolled spending leads to over commitment of debt here and overseas. The fear of inability to recover the debt by the lenders put the brake hard and the wheels come to a halt.
Accelerated spending helped China, India and many developing countries to create employment, which cannibalised ours and many developed countries'. The thought of employment recovery is farfetched, because there is no way but probably with one possible avenue that our labour costs can be lowered substantially to compete in the international arena.
That possible avenue relies on new migrants coming to Australia with different mindset and attitude towards work. The costs of construction, direct and indirect, may come down, not dissimilar to the scenario of Asian restaurants and cafes serving mouth-watering and appetite satisfying meals.
When will this prophecy be realised? I think the process has already begun!
Commenting on "Election the unknown for next year's market"
http://theage.domain.com.au/real-estate-news/election-the-unknown-for-next-years-market-20121212-2b9vu.html
Whichever party wins the election is not the determining factor for the boom-and-bust of the real estate industry. The concern of today is unemployment. The reported unemployment rate is totally unrealistic, and unreliable. To understand the extent of economic misery, all you need is to count the number of For Rent or For Lease signs in busy shopping strips, CBD commercial buildings, and the number of people carrying bags of purchased items in shopping centres.
Gone are the good old days of economic recovery. The wheel of economy stops when people stop borrowing and stop spending. Unfortunately, it is the uncontrolled spending leads to over commitment of debt here and overseas. The fear of inability to recover the debt by the lenders put the brake hard and the wheels come to a halt.
Accelerated spending helped China, India and many developing countries to create employment, which cannibalised ours and many developed countries'. The thought of employment recovery is farfetched, because there is no way but probably with one possible avenue that our labour costs can be lowered substantially to compete in the international arena.
That possible avenue relies on new migrants coming to Australia with different mindset and attitude towards work. The costs of construction, direct and indirect, may come down, not dissimilar to the scenario of Asian restaurants and cafes serving mouth-watering and appetite satisfying meals.
When will this prophecy be realised? I think the process has already begun!
