Sydney, Canberra, Hobart and Darwin house prices up over 20% – are Aussies blaming property investors?

No. Australians are not blaming their rapidly rising house prices on property investors. Why, because it’s not property investors driving up house prices in Australia, or in New Zealand.

The Domain House Price Report highlighted a “perfect storm” of:
– rock bottom borrowing costs
– a small number of properties on the market
– strong demand
– and government stimulus money amid the pandemic

All of the factors listed above are also causing New Zealand house prices to rise but that’s not stopping the Ardern government from blaming housing unaffordability on property investors. Either she doesn’t understand how the housing market works, or she’s blatantly lying about the causes in order to further her aims of transferring wealth from those who work and add value to the growing number of people on unemployment benefits (over 200,000 people today) and sickness benefits and those lining up for free social housing.

Either way, house prices in NZ are not going to become more affordable until the government faces up to the facts about what’s driving the unsustainable house price gains. While heaping new taxes on Mum and Dads who are saving for their retirement might look good to her voters, the only way to solve a problem is to understand the core issues, to look at the truth – something a kin to an alcoholic first admitting he is one.

Will Ardern face up to her taxation addiction? Only time will tell.

John Kenel
Assured Property

Read the full article here: BBC News

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