Robert Gottliebsen forecasts “mother of all dwelling booms” driven by property investors

Paul Simpson - Real Estate

HouseRiseAustralia could experience “the mother of all dwelling booms”, according to the veteran columnist Robert Gottliebsen.

“Australians are going to rush for bricks and mortar,” he forecast pinpointing a three-pronged expected boost to prices.

“First is a dramatic push to lift the demand for dwellings by banks offering cut mortgage rates thanks to Reserve Bank Governor Glenn Stevens.

“But second, and just as importantly, there is reluctance by banks to fund new supply.

“In any commodity if you inflate demand and squeeze supply, prices go through the roof.

“Thirdly taxpayers will subsidise the boom via a massive increase in the use of negative gearing via both personal and superannuation tax breaks.

“Longer term, that will damage the economy and the Reserve Bank will have to take responsibility for pulling the price boom trigger,” he wrote on Business Spectator.

He says most of the demand will be from investors, including…

View original post 275 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s