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From: Andrew Scott
A simple theory of mine that I'd like to test with people..
It seems that Melbourne, in particular, has had huge increases in property sale prices in the last 6-12 months. Based on what I read in the paper, other capital cities haven't seen the same phenomenon to the extent that Melbourne has. (Is this true?)
In that case, why should Melbourne be special? The FHOG applies everywhere. The low interest rates apply everywhere. The baby-boomers moving their investment money around could apply equally everywhere as well.
Just an idea.. there have been advertising blitzes in Melbourne regarding property investing. Two-three major builders advertise on morning radio, prime time, about their special building deals (eg. doubling the FHOG to $28k). Three-five property investment "advisers" / marketeers have also been advertising widely and prominantly. Obviously this level of advertising is capable of creating demand (even if it isn't demand for their services, but just putting the idea into people's heads that they should be investing in property). Perhaps this has a hand in the skyrocketing prices?
Does this idea pan out? Are there similar advertising blitzes in other capital cities?
Andrew Scott
A simple theory of mine that I'd like to test with people..
It seems that Melbourne, in particular, has had huge increases in property sale prices in the last 6-12 months. Based on what I read in the paper, other capital cities haven't seen the same phenomenon to the extent that Melbourne has. (Is this true?)
In that case, why should Melbourne be special? The FHOG applies everywhere. The low interest rates apply everywhere. The baby-boomers moving their investment money around could apply equally everywhere as well.
Just an idea.. there have been advertising blitzes in Melbourne regarding property investing. Two-three major builders advertise on morning radio, prime time, about their special building deals (eg. doubling the FHOG to $28k). Three-five property investment "advisers" / marketeers have also been advertising widely and prominantly. Obviously this level of advertising is capable of creating demand (even if it isn't demand for their services, but just putting the idea into people's heads that they should be investing in property). Perhaps this has a hand in the skyrocketing prices?
Does this idea pan out? Are there similar advertising blitzes in other capital cities?
Andrew Scott
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