Australia: Melbourne Property Boom at end?

Property Prices in Melbourne have been crazy for the last 2-3 years (a bit like Ireland circa 2006-2007, same sentiments about renting , people buying anywhere ‘just to get on the ladder’) but the boom seems to be ending - not suprised with the rise in interest rates - although Australian prices are a bit more based on fundamentals than Ireland’s massive rises were.

link: news.com.au/heraldsun/story/ … 61,00.html

Standard variable mortgage rate at the big five banks is now 9% and forecast to rise even further, perhaps as early as next week.

Looks like the affordability wall has been hit.

In Brisbane, the capital of Queensland listings are up 62% on last year.

Looks like the party is almost over.

news.com.au/couriermail/stor … 02,00.html

Main reason for property bubble in Australia is NEGATIVE GEARING.

Found a very good and short article worth reading below.
prosper.org.au/
NEGATIVE GEARING – INCOMPETENCE OR CONSPIRACY?
By Professor Putland

If you are in Australia and would like to help potential home buyers and the wider community in general then you could try requesting Treasury to amend legislation re Negative Gearing. I have created an Open Letter you can use.
zzalanz.googlepages.com/home
then link to openlettertreasury2008

Cheers

negative gearing = social welfare for landlords.

a fine waste of taxpayer’s money.

they should all be made to queue up at a centrelink office every week to collect their handout.

explanation of negative gearing here andrewbartlett.com/data/Taxation … g_2007.pdf if anyone’s interested.