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Skyrocketing prices: What is really to blame?

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Your Investment Property | 01 Jul 2014, 12:57 PM Agree 0
Growth is good, but rapidly accelerating property prices can also hinder investor portfolio expansion. These are a few theories regarding the cause.
  • Ian Jones | 01 Jul 2014, 07:29 PM Agree 0
    Well based on realestate agents in Sydney I speak too, then this article is not really correct.
    Yes low interest rates are spurring up people to borrow, but also the foreign investors are throwing massive summs of cash into high interest accounts and using the interest payments to buy property and therefor its all logged as "Australian generated" income.
  • Ecoengine | 16 Jul 2014, 08:59 AM Agree 0
    Our record rate of overseas migration isn't enough to keep the property bubble inflated, so foreign investors are invited to help out! House prices started to fall after the GFC, so K Rudd deliberately boosted immigration, and doubled and tripled the first home owners grant. There's nothing organic about unaffordable housing - it's due to a free-market economy for the benefit of corporations.
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