That's a million dollar question in an answer of opinion in a 10 page essay form.The question(s) to ask with any of this stuff is why
The boss of one of the world's biggest banks has warned US interest rates could climb to 8%.
Jamie Dimon, the head of JPMorgan Chase, said his bank has prepared for interest rates to jump because of "persistent inflationary pressures".
Central banks around the world have been busy raising rates in a bid to dampen rising prices.
But with US inflation gradually easing, the overwhelming expectation is for the Federal Reserve to cut rates this year.
Markets are pricing in two quarter-point rate cuts in 2024.
In his annual letter to shareholders, Mr Dimon said that the bank was ready for a "very broad range" of rates, from 2% to 8% or even higher, potentially pushed up because of high government spending and the need to curb price rises.
They include rents and new homes in Australia.From memory we don't include housing or rent rises in our CPI calculations.
I'm on limited wifi access, or I would look it up.
Thanks for that, isn't it the cost of established homes that are flying in major cities? At least rents and new builds are captured, by the sound of it.They include rents and new homes in Australia.
" The Consumer Price Index (CPI)
The CPI measures changes in the price of a basket of goods and services over time, designed to be representative of average household expenditure. It is calculated using price changes within each capital city only and cannot be used to compare differences between regions. The CPI does not include the cost of buying established dwellings but includes rents, the cost of new dwellings (excluding value of land) and major alterations and additions to dwellings. Mortgage repayments are not included in the CPI. The CPI is often referred to as the measure of inflation, or headline inflation."
https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/pubs/BriefingBook47p/CostOfLiving#:~:text=The CPI does not include,of inflation, or headline inflation.
if you can get your new home completed ( not just to 'lock-up stage ' ) i believe the prices are still steep , but of course the flaw in this is the land the house is on , is more likely to be further out of town/city or on less than prime land , so while the building cost has ballooned , the land cost stays subdued ( to some extent )Thanks for that, isn't it the cost of established homes that are flying in major cities? At least rents and new builds are captured, by the sound of it.
They can if there's a supply restrictionwithout surplus money in the economy, prices can't reach new heights.
There isn't though, banks are still fiancing as usual. People have equity in their homes by default to borrow against. Govts are still supplying first home owner grants to squeeze people into the housing markets.They can if there's a supply restriction
There isn't though, banks are still fiancing as usual. People have equity in their homes by default to borrow against. Govts are still supplying first home owner grants to squeeze people into the housing markets.
Melbourne Airport international pax numbers hit record in February
More than 900,000 international passengers travelled through Melbourne Airport last month, setting a new February record. The 915,456 international travellers welcomed in February 2024 represents 102% of the previous busiest February in 2019. Overall, Melbourne Airport welcomed a total of 2,859,942 people in February, just 7,301 travellers shy of the February record set in 2019.
Wait, are you talking about housing specifically or what?There isn't though
Cut in tax??? Where..we have reached the highest level of commoners money going in various taxes at all levels 43% of income as per a previous post of mine last week I believe.As I said a while ago, the Australian Govt has a massive defence spend to fund, a massive cost to transition to renewable energy, a massive debt left over from covid to fund, a massive welfare cost spiral and they are cutting income taxes.
Inflation going down, doesn't really fit in the equation, a reduction in consumer spending, a reduction in the income tax reciepts, a reduction in business tax = catastrophe IMO.
More pump priming is my guess, how long that goes for is the big question, sooner or later it has to pop, how that pop manifests itself is the question. IMO
They said on the Qld mainstream media that the average 4 bedroom build went from 250K to 450k, and land values seem to go up daily. The housing market is one big mess, every time a builder goes under it's adding value to existing stock. The increase in population adds more stress to the market.Thanks for that, isn't it the cost of established homes that are flying in major cities? At least rents and new builds are captured, by the sound of it.
I was talking about surplus money in the economy. As others have said before 5% interest is nothing in the grand scheme of things, Inflation is still lingering.Wait, are you talking about housing specifically or what?
Yes but I was talking about the cause of the inflation being a reduction in supply of, well, many things.I was talking about surplus money in the economy. As others have said before 5% interest is nothing in the grand scheme of things, Inflation is still lingering.
Is Australia ready for its population growth over the next decade?
Is Australia ready for its population growth over the next decade?
Australia will have 3.7 million more people in a decade's time, though the growth won't be evenly distributed. Over 85s will see the fastest growth, while the number of younger people will barely rise.www.firstlinks.com.au
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