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House prices drop in March qtr
Published 11:20 AM, 29 Apr 2011 Last update 1:55 PM, 29 Apr 2011
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2 Comments
Steven Majewski wrote:
Why is it that when the stock market falls 2.1 per cent in a day it hardly makes the news, yet when property prices fall by the same amount over a three month period, considering that the median price rose by 160 per cent over a ten year period, it is a slump?
The property industry needs to stop with its hysteria (See House prices slump in March qtr, April 29).
29 Apr 2011 12:09 PM
David Freeman wrote:
I totally agree with Steven Majewski (See 'Slump or setback?', Conversation contribution, April 29). But he may not agree with me that property has become the new 'get rich quick scheme'. It took us from 1972 to 2003 to make a very good capital gain. There was no negative gearing either in those days, at least not for us, to artificially inflate prices (See House prices drop in March qtr, April 29).
Any business operating on a loss basis should not be supported by the other taxpayers as a normal incentive to expand a loss making portfolio of property. Sooner or later such schemes come unstuck like the forest products tax incentives, where Australian farming land was eventually sold of at bargain basement prices, yes, to overseas interests.
Let's hope the dreams of property portfolio speculators do not go the same way, because there will be serious damage all round if they do. That is why a government sooner or later needs to put strict limits on such schemes. Hopefully not in a property downturn to make things worse, but gradually with a notice of intent and start date.
30 Apr 2011 7:37 PM
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