An article of interest to fellow OzBargainers. The RBA has been puzzled why there is so little inflation in Australia, especially since the AUD dropped so much since 2013.
The answer they credit is Aldi, and reckon the trend will continue as Amazon opens locally here.
http://www.news.com.au/finance/business/retail/lower-prices-…
I'm breathlessly awaiting their take on low wage growth and skyrocketing housing prices.
One simple answer: Chinese.
As usual, the simple answer doesn't tell the whole story. We have a lot of land in Australia more of it should be sold cheaply to first home buyers.
Negative gearing has more impact than the Chinese to house prices.
http://www.smh.com.au/federal-politics/political-news/house-…
Look, I admit I don't know much about the politics of this, but what about proximity of job centers and effects on infrastructure.
I know where I am, peak hour traffic is already ridiculous, with not much in the way of any immediate jobs to be done to relief the congestion. Meanwhile the block next door has just been bulldozed and five 4 bedroom townhouses are being built. I expect a minimum of 10 more cars to add to the already heavy traffic (and yes I know, inner city is probably much worse, I'm lucky being further out in the burbs).
@tomsco:
Land developers can, and should, be asked for contributions for infrastructure. This should extend to providing public transport corridors and not just curbing and channeling.
One simple answer: Chinese.
http://www.abc.net.au/news/2017-03-14/nsw-government-might-r…
"Foreign Chinese buyers only account [for] 3.6 per cent of demand in New South Wales — a lot of that demand is for new apartments, new houses, not existing houses," he said.
http://www.news.com.au/finance/real-estate/buying/the-foreig…
A closer look at the figures, according to the Australian Financial Review, shows the figures aren’t as scary as they seem. Once you strip out home jointly purchased by Australian and foreign citizens or by dual citizens, the share of foreign buyers is just 8 per cent, and that includes permanent residents according to today’s report.
"Foreign Chinese buyers only account [for] 3.6 per cent of demand in New South Wales"
That only account for Chinese who have not recently acquired PR or citizenship.
a lot of that demand is for new apartments, new houses, not existing houses,"
Well no s Sherlock, all the demand for foreigner are new apartments and house, that is the only type of property foreign investor can actually buy. It's illegal for foreign chinese to buy existing houses.
Foreign Investment Review Board approval
If you are a foreign resident you cannot buy an established residential dwelling in Australia, either directly in your name or through a trust relationship or company structure. Penalties apply for breaching this rule.
You can buy other types of Australian residential property, such as new dwellings, vacant land and property that is to be redeveloped, but you must first get approval from the Foreign Investment Review Board.
If you are a temporary resident you can buy an established dwelling if you use it as your residence in Australia and get approval from the Foreign Investment Review Board.
https://www.ato.gov.au/Individuals/International-tax-for-ind…
And the words in the ABC article are coming from the "Deputy director of the Australia-China Relations Institute at the University of Technology", definitely no bias there.
A closer look at the figures, according to the Australian Financial Review, shows the figures aren’t as scary as they seem. Once you strip out home jointly purchased by Australian and foreign citizens or by dual citizens, the share of foreign buyers is just 8 per cent, and that includes permanent residents according to today’s report.
These figures mean nothing. Just because the buyer is not a foreigner by law doesn't mean that the money isn't coming from oversea. All it take is one relative with citizenship over here with a decent job and next thing you know every one and their second cousin from oversea will have a house in Australia.(Bought in the relative name of course).
The expert are not the one waking up at 9 am on saturday to go to auction and then having to deal with chinese bidder who over pay for a house and didn't even reach the reserve price because the seller know they can get max value from them.
They eliminate housing (and fuel/energy costs!) from the inflation calculation.
I don't believe there is any reasonable reason to do so, as it means there is no actual figure showing impact of price changes on people, just one that shows the impact of a few price changes, but not the ones impacting budgets.
Amazon will be great here.
Finally able to get Amazon/Twitch prime? Yes plz.
down with ebay
in other words, competition