Originally Posted by
Aaron
The accommodation supplement is a bit like a first home buyer grant, pouring more fuel on the fire to make up for the fact that monetary policy is driving up the price of housing beyond what a lot of people can afford.
A bit pointless arguing about monetary policy, if the central bank raised interest rates in response to rampant house price inflation they would get it in the neck from exporters and owners of property whose house price has gone down instead of up. An Arts student will always take the easy option as will most people.
It is how it all ends that I should be focusing on instead of whining about the apparent stupidity of it all. I guess it will happen as it has throughout history, hopefully we can avoid a war at the end of it all.
We have nearly run out of interest rates to cut and the amount of money printing is so large it is incomprehensible to the average joe bloggs like me but rather than prices rising it is more a matter of dollars becoming worthless. Any real asset will be an inflation hedge and debt will be an asset if monetary policy gets rid of it for you.
That is why I am looking to leverage up on a house purchase, although still holding on to the faint hope of a pull back or crash first as I am unsure what sort of property to buy. Why complain about a govt subsidized industry when you can join it.
Also still waiting to hear which party???