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“Tug of War”

9 April 2021

“House $ Price Party” vs “Haka from New Zealand”

  

The Age and Sydney Morning Herald published on April Fools Day?!

“House price party will end in tears unless someone turns off lights soon.”
 

If the Australian Property Market were a party, it’s at that point where the drinks should be put away, the guests kicked out and the bed turned out for a good night’s sleep.

Unless the Reserve Bank, the Australian Prudential Regulation Authority Federal and Sate Governments, the country is going to wake up with a hangover that will last for years.

 

Then the ABC in New Zealand-

“Housing boom in New Zealand threatened by loan, tax changes.

Will Australia follow? ”
 

Now the (NZ) Labour Government has taken matters into it’s own hands…

It’s now a very strict rule that anyone that sells a house, previously within 5 years now anyone with 10 years has to pay tax on those capital gains.

Even more controversially NZ Government has removed tax deductibility on mortgage interest costs for property owners (the end of negative gearing!)

 

The post-Covid (?!) “breakout” unfettered in Australia is now a three tiered “bubble” in house prices.

 Contrast this with the NZ Government’s approach.

 

“$1000 per day increases in property prices” says a Blue Mountains Valuer,

But it’s just not sustainable”.

 

Where does that leave a Vendor? 

 

Real Estate always was a question of timing.

A “Time to Buy” and a “Time to Sell”

Not since 1987 has the market seen this sort of activity.

That’s a “1 in 35 year storm”.

Decision Time. 

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