Quote:
Originally Posted by leesa
Sure, but when the market is fiddled with so as to limit supply than it otherwise would be, do you still think it's fair to explain it away as supply and demand?
Overseas investors have bought up property in Australia for no other reason than to park their money here as so far it's been a stable market. Those properties don't get rented out, lived in, nothing, just sat there locked up empty, doing nothing but reducing the supply and keeping the value of surrounding properties inflated.
If we're going to fall back on 'supply and demand' then surely it should be a closed system? No overseas investment, australian jobs and australian money have to pay for australian housing. Then the "supply and demand" would naturally find an equilibrium as you describe but instead we have other countries finding their way into the mix.
Can you honestly sit back and still stand by "supply and demand" when the market is fiddled with like that?
|
Absolutely I can sit back and watch it. Because other than moral sentiment, that is the way it's always been. Do I like it? Is it fair? Well that is a can of worms perhaps for another thread. It's business at the end of the day. Not a hand out.
But supply and demand has always been the catalyst for price marketing. Take away that supply (i.e. international investment) and you will see prices adjust accordingly.
I feel sorry for those who cannot break into the market, I really do. But unless something happens to the 'demand' part of the equation, then you will see prices remain where they are. For the record, I dislike international manipulation of our housing market. It's created a false sense of inflation and yes, it has pushed out the average mum and dad out from getting their first home.
It's still, Not impossible though to get it, but serious sacrifices need to be made to achieve that Australian dream of owning your own home. Lot's I'm afraid are either locked into a lifestyle difficult to get out of, OR are not prepared to make the sacrifices needed for whatever reason and prefer to whinge at the those who have done what its taken to achieve their goals. There is no point sugar coating the reality.
With Covid, we are seeing things move now. Foreign investment is being introduced back in starting with Hong Kong based on what the PM recently said, so who knows how things will turn out. I really do not like how much we are reliant on international business to 'keep Australia afloat' though, but there is very little other option since we have deregulated everything. We are kind of at the mercy of what other countries do now.