The Great Housing Debate rages on over at our new Daily Reckoning Forum. We are interested in Australian housing only to the extent that it may be a symptom of the worldwide credit bubble currently deflating. But the mail bag here at the Old Hat Factory is full of letters advising us to quit acting like morons and get in on the action already. Hmm.
It is true that over the last five years, the mineral boom in the West has driven Perth house prices higher by 137%. There’s lots of new money in the West. It has to go somewhere. And people have to live somewhere, don’t they?
Still, the ABS report shows prices in Australian capital cities up by an average of 12.3% year-over-year. The ABS all says that two out of every three Australians lives in a capital city (64%). If you live in Melbourne or Brisbane and are looking to buy a new home, they went up by 20% last year. Buy a house! You know it makes sense.
In other news, the ABS reported 1,862,000 lambs were slaughtered in December. That’s 40,000 tonnes of delicious meat and the highest number on record for 30 years.
Source: Australian Bureau of Statistics
Should you buy a house? Should you sell? Is negative gearing a good thing? Does Kevin Rudd’s new plan to help first-home buyers save a little extra make any sense?
We don’t have any answers to property questions. We have, though, been thinking about lowering our rent here in Elwood by digging a bunker in Coober Peddy, producing some extra income from our opal operations, and resuming our reckoning there. Have your say over at the Daily Reckoning Forum.
The Daily Reckoning Australia