Last week when I read my column to my wife Aleesha (I force the entire family to hear them under duress) she made a very accurate observation. “It sounds like traffic calming” she said. “What do you mean?” I asked back, annoyed that she wasn’t glowing in adoring feedback about my wordsmanship. The yarn was about the proposed changes to negative gearing and capital gains tax rules and what the likely outcome would be for tenants. Leesh went on to explain that traffic calming just diverts the problem to another area. She nailed it! That’s exactly what it feels like.
So today as I mansplain her feedback, I thought better to acknowledge the inspiration because it happened again this week! The RBA has put up rates and the rationale to the everyday person seems to be upside down. Due to the cost of fuel and now knock on effects of supply chain delays, we need to increase interest rates to curb spending. I imagine curbing spending was the hot topic in most households prior to the rate rise given the media attention about the fuel worries. So now we are going to take more money out of the household budget, when we need more money for fuel. If we were out spending too much at the shops and misbehaving then that makes sense. It’s like we are being punished because fuel went up, but not because we are out having fuel parties and overspending but because of a war in a fuel region.
Also, the words ‘supply chain delays’ should send shivers down the spine of anyone that has been close to construction or solving the housing issue. The words mean ‘costs more’. At a time when we are trying to create more supply, this will no doubt slow it down or increase the cost, and with rising rates we have less to spend. It’s times like these you really hope the people at the top of the tree really know what they are doing because from ground level it just feels like a bigger problem has just been diverted right on to our street.
In Brisbane’s prestige property market, flat painted gyprock walls are quietly being replaced. Discerning buyers searching for turnkey luxury are drawn to spaces that offer tactile warmth and architectural permanence and microcement, limewash, and Venetian plaster have taken center stage. Here is why hand-crafted wall finishes are driving premium values in suburbs like New Farm, … […]
Last Saturday I called over 30 auctions at The Calile. The properties ranged from entry level to some of the best homes in town. Our October and November auctions have historically been our biggest events. They provide a great macro view of market performance and, more specifically, who’s confident right now. As I wrote last … […]