- 10 November 2015
Whose Crystal Ball Is Telling The Truth?
The bank monopoly beat up, not their share holders but, their customers.
However, APRA's chairman Wayne Byers just last Friday said, "rules that have forced banks to hold more capital have made them safer and as such investors should require marginally less return".
It seems that Byers crystal ball is cloudy. He does not realise that there is a monopoly. In a monopoly the free market doesn't set prices - the monopolist does.
Byers' crystal ball is equally foggy on his claim that Sydney particularly, and then Melbourne prices are booming out of control and that he has to prick that balloon by restricting loans to investors. He is ignorant to the fact that the previous cycle saw Sydney and Melbourne "ballooning prices" go higher than they currently are. Then as now, more supply came into the market to correct it and level off price gains...
Related Posts
One in Four Aussies Are Reassessing Their Homes: What This Means for You in 2026
New Canstar research shows that many Australians are quietly reassessing their housing situation. According to the survey, more than one in four homeowners are considering their next move over the coming year. The figures vary across the states, with Queensland showing the highest proportion of people thinking about...
The Christmas Property Myths That Cost Investors Money
Every year the property market slows as people turn their attention to travel Christmas shopping and family time. With so much noise around the holidays it is easy for investors to absorb advice that sounds reasonable but has little basis in how the market actually works. Property Club continues to watch these...
Sydney Units Are Quietly Entering Their Next Growth Phase
Sydney is heading into another shift, but it is not happening in the prestige house market or the headline grabbing suburbs. The real movement is in well-located units sitting close to transport, education and major employment hubs. These are the properties renters line up for and the ones buyers turn to when house...