Tuesday, September 20, 2005

'The bust is over' — typical unhelpful hype from self-interested spruikers

Bust is over so sit back, wait for the next boom - National - smh.com.au

Bust is over so sit back, wait for the next boom
By Michelle Singer, Property Writer
September 18, 2005
The Sun-Herald

The slide is over. Property experts say the Sydney market has "bottomed out" - though it is unclear how quickly it will climb, or how far.

That's right, Michelle — publish a 'good news story' in the Sunday paper for property investors and desperate hopefuls to try to encourage more real estate sales. Never mind that others say that the market will plateau or decline for several years to come, even within the same article — run with the 'bull' headline instead.

Who makes money out of it?
- Developers

- Lenders
- Real estate agents
- Spruikers
- So-called 'property researchers' such as APM, BIS Shrapnel, and so on, whose predictions should be taken with a grain of salt.

If I was running the place, all these people would be either shot or sent to re-education camps for a very long time, for destroying the fabric of society for their own selfish gain. They care not one whit for sustainability or affordability or social justice, they live only for the next commission or sale. Clearly inflationary spikes increase their commissions and profits, ignoring the fact that house prices and rents have to be underwritten by wages, and therefore cannot continue to rise disproportionately without household structural changes or overcrowding. One of those changes has been a shift to fewer children in families, and why? For affordability reasons... It's a vicious cycle. Therefore, the property industry and the greedies are feeding the artifact of negative population growth...

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