Who is going to benefit from the proposed changes to Real Estate?
Bank economists, real estate agents, valuers, investors, the media ... they all have differing views as to what side the coin will land on.
I tend to think the coin will land on neither until the government comes clean as to what changes they intend to implement.
Now this is where it gets a little hard to fathom. What does the government want to achieve?
* Discourage property investors?
* Fix the flaws in the tax system?
* Reduce house prices?
* Encourage investment in local business/infrastructure?
From what I have been reading they want to achieve it all and it seems they want to achieve by making changes to only one industry, Real Estate. Surely that would be like saying, it’s time to rejoice, we now have a magic pill, take this pill and you will be cured of all sickness.
Making adjustments to one sector will result in a flow on effect to others. But will they be beneficial or catastrophic? Yes that negative extreme could come into play if they screw it up, which is quite on the cards from what I have been reading.
There seems to be a general conception out there that we have bounced back from the recession and many are already donning the rose tinted glasses.
BEWARE the after-shocks can sometimes be more devastating than the original quake. The infrastructure has been weakened and if the government push too hard for changes to the real estate industry things could start to worsen. Yes, the perceived effect could be opposite to what some are predicting and I am not alone in that thinking.................
|
RSS | About Us | Policy
