Above is an interesting extract from an interview with Merriton Apartment’s chief, Harry Triguboff, aired last night on ABC’s The Business.
In the interview, Triguboff argues that falling interest rates are likely to lead to increased investor interest, which reduces benefits to first home buyers. When quizzed about whether Chinese buying might be pricing-out locals, Triguboff argues that the increased demand from Chinese and the corresponding higher prices is good, since it entices locals to enter the market:
“Our buyers don’t come in, not because prices are dear, but because we decided that property values should not go up. And no body wants to spend money on an investment which doesn’t go up. So we must decide if we want local people to buy, then prices must keep on going up…
The Government should never be worried about how to push prices down. All they do is just raise the interest rate… So there’s no problem…”.
So, keep prices rising and all is good. And here I was thinking that home ownership was primarily about gaining shelter?
