Concerns About Rising House Prices Misguided: Terry Ryder

It’s a curious phenomenon in Australia, that as soon as property markets start to gain momentum and prices rise, it seems to attract a barrage of negative opinions and blame, reported Terry Ryder in PropertyObserver.

Ryder refutes the “blame” claim, stating that given two-thirds of Australians own their own home, and what’s more, rely on this asset to provide for their retirement, it’s a curious thing how people are complaining about property values increasing, as if it’s a bad thing.

Finding someone to blame for housing price growth is easy according to Ryder. Investors are at the top of this list of popular but misguided notions of people to blame for price rises, no doubt due to all the negative gearing tax benefits this group receive. These are closely followed by foreign investors, apparently responsible for inflating property prices. First home buyers do not miss out on the finger pointing either. Generous government grants and stamp duty concessions received have no doubt contributed to property price rises.

Concerns from those shouting “crisis” on the horizon are never backed up by any solid credible research to support their blame theories, Ryder wrote.