photo credit: midlander1231 For too long, the media eagerly reported the property spruikers’ claim ‘prices only go higher’. This ‘truth’ turned homeowners into speculators and led a whole generation of first home buyers to commit to enormous mortgages they will only...
BLOG: housing
Steve Keen the Property Prophet predicts doom and shows why.
Unconventional prophets are often vilified, particularly in their own country. Steve Keen is no exception. He is one of only a handful of academic economists to contest the rah rah rah of the property spivs who claim - wrongly and misleadingly - that real estate...
Six Factors to Flip Negative Gearing into Negative Equity – Someone’s Going to Get Hurt
The Australian Tax Office has released figures on the extent of negative gearing in Australia ahead of the Henry Tax Review. This is no accident. They are preparing the ground for Ken Henry’s changes. The picture drawn is not pretty: it shows the nation’s...
Put away that cheque book, home buyers
photo credit: UGArdener This morning, Reserve Bank of Australia Governor Glen Stevens appeared on Seven Network’s Sunrise program to talk up interest rates and talk down the property market. Using tabloid television to broadcast RBA views is unprecedented. It...
Rising Interest Rates in Whose Interest?
Written Oct 16th Raising interest rates will do little to address underlying economic issues, says visiting US economist Professor Michael Hudson. "The market factoring in 7 interest rates rises spells danger for the Australian economic miracle" warns Professor...
Economists Who Dominated the GFC Predictions
photo credit: Stuck in Customs On the first anniversary of the collapse of Lehman Brothers, this piece sums up the cause to the GFC, as predicted by 5 economists who subscribe to the line of economic thinking we promote: land rent theory. Dirk Bezener, the academic...
Lost Vegas
Timely when local current affairs talk about 20,000 homeless whilst 20,000 vacant houses are holding these people to ransom In Lost Vegas.
Land Tax to Affordability
photo credit: kodama (home) Suburbs hit with land tax increase TAXPAYERS owed more than $227 million in land tax by the end of February - a 20 per cent increase since last year, Office of State Revenue figures reveal - with a Herald investigation finding that...
Clearance Calling
photo credit: Cosmic Kitty With auction clearance rates plateauing at 54% for the 3rd consecutive weekend, property pundits are doing all they can to avoid doom and gloom perceptions. The market has 'found a new level' is the positive spin. Let's hope most First Home...
Container Homes to the Rescue?
Desperation in the housing market is leading to varied responses. The latest the Age has promoted is the Container Home phenomenon. Miners earning $100,000 have been forced into them in Port Headland and other fast growing mining communities. Now a company is...