Hi,
Just done session 10 - loving every moment of my learning.
Can somebody help me with question 4. on page 10-21. Just want to make sure i'm on the right track...I'm not 100%
Here is what I put.
New incentive for first home buyers - impact Demand - send prices up
news of new financial crisis in Europe - ? Increase supply (people sell out of fear, or increase demand as more foreign investors coming to AUS?) - Send price down
property prices skyrocket in last quarter - impact supply (less people buying? more supply) - send price down
home loan interest rates increase - impact supply (more owners forced to sell) - prices down
abolish 50% CGT - increase demand (not as many people selling) - prices up
100% LVR loan - increase demand - prices up
land tax double - increase supply (more people selling, less buyers) - price down
Swine Flu - increase supply - prices down.
Thanks guys.
Hi there, I am inclined to agree with your answers except for 'prices skyrocket in last quarter', this indicates there is increased demand and prices will go up some more for a time.
My thoughts on CGT is if Capital Gains Tax was abolished I would be keen to sell and pocket all my profit, I am inclined to say that it would increase supply AND increase demand by enticing other investors to re enter the property market but the overall activity would send prices up further.