Nine Property Predictions for the next 10 years...

I'm no economist so my pea sized brain struggles with the mechanics of the global economy, but I was reading an article the other day about the global motivations for central banks such as the RBA to drive down interest rates. After reading the article my pea sized brain got to thinking that the RBA may well be driving down our interest rates to weaken our dollar. That makes our exports considerably cheaper and given that WA export a lot of stuff they dig out of the ground a weaker AUD has to make the dirt the export from WA more attractive to international buyers, which will certainly help the WA economy. I doubt the RBA would be pushing the interest rate up or down to control the local real estate market over there, but weaken our dollar to make our exports cheaper for OS buyers--that will not only benefit WA but the economy as a whole and no doubt that is on the RBA's radar. Like I say I'm no economist so my theory is probably crap.

 

Nope. You've almost got it.. lower AUD drives exports, but hurts importers and therefore consumers. Somewhere in the middle is the balance that will assist our national economy.

For our sensationalist media, RBA + housing affordability crisis is much catchier...

PS - Being an 'economist' doesn't give a theory any more credibility than if you were a shelf-packer, or Pauline Hanson.

 

I don't agree with the flavour of her politic but she was ahead of her time! 20 years ago her solution to pay for her policies was to "print more money".

Every Central Bank globally seems to be doing that these days...

 

7. Lower population growth

If Melbourne's predicted (I know, I know) populatoin growth of 2.3 million in less than 40 years occurs, would that still be lower population growth??? Just under 60k a year if constant and no explosive growth....

 

I could never forget! Sometimes the simple solutions are the best???

 

Printing money may be what they're doing, but it doesn't really solve anything. Otherwise we could all just prints lots of money and never work. And Russia wouldn't be in a recession. Just print more ruble.

 

You realise I was kidding right???

 

Pretty much BUT you also forgot that if the RBA drives up assets (house prices) more than your salary went up in the same year.......then you are actually going backwards and the government is stealing from you by keeping rates low an driving up prices.

 

if we followed half these so called experts recommendations, we d end up no different to a 4yr old using darts to pinpoint the next hot spot

 

huh? that's how I've been doing it for years.. Is there a better way?

 

i guess we can't have our cake and eat it, huh. we can have low interest rates but high house prices, or high interest rates and low house prices.

 

we could......but Australians are stupid when it comes to FOMO

 

Not just Australians. About 98% of the world's population suffers from FOMO.

 

Why can't we give concessions to mining industry? Would that work??

 

well youre probably going to have better success using darts

 

Steve Keen likes this

 

Doesn't seem quite wrong enough for Steve.
Needs a really improbable prediction too.

 

Yes I agree mostly.. Although I'm not an expert on Perth politics...I'd say, look at what Brisbane has done from a similar position to Perth 5-7 years ago. They have a clear plan (published) to diversify into non mining and aggressively courted private investors to fund it. So far it seems to be working and more slated in the pipe. It's not just apartments here thats in the pipe.