Australian East-Coast Capital Cities and Major Regional Prices Rising

Australian East-Coast Capital Cities and Major Regional Prices Rising

 

 

The average east-coast capital city and major regional price has been rising since May 2012, and in the first two months of 2013 property prices jumped an annualised 9% according to RP Data-Rismark's index.

 

 

The debt-fuelled global property bubble popped in Britain, Europe and the US, and conclude we must be next because everything is interconnected.

 

 

The scary thing is they would have been right if they hadn't left out the bit about China coming to our rescue.

 

A quarter-acre block or apartment is a global commodity just like shares or coal, and buying a property requires consistent and thorough homework.

 

 

Central banks are pouring money into their economies, which is spilling into everybody else's and this has lifted our dollar and allowed interest rates to drop.

 

 

Rates are even falling of their own accord, though in a sneaky way the banks have taken to offering a bigger discount on their variable rate for new customers.

 

 

We entered the global financial crisis with a housing shortage, which has since been exacerbated by a prolonged building slump and that's why rents have been rising and investors are returning to property, perhaps after a flutter in the share market first.

 

 

In fact, houses are worth more than on the eve of the GFC - Australia must be the only Western country to have managed that though down about 5 per cent on average from their peak two years ago.

 

 

Housing construction has picked up and is gathering momentum, while Wall Street feeds the share rally, which, by boosting confidence, also helps property.  Houses are still popular but are giving way to units and Villa's as the better investment for First-home buyers who see them as a cheaper option, while they also suit downsizing baby boomers.