Renegade Economists Show 368
Catherine Cashmore discusses the 7th Speculative Vacancy report. Beyond the staggering 64, 386 empty properties the report quantifies, we discuss some of the finer points of inefficient land use and its effects.
We also delve into real estate theory and demand assessment – how developers adjudge as to when and by how many properties they will ‘free’ in the next ‘staged release’. One developer here is up to stage 128 and has barely started. Miraculously prices keep going …..up! Somehow this is not price manipulation according to the competition commission. Adding insult to injury, the MSM blames affordability on the Housing Supply Crisis.
Of course this hoarding has little consequence for property speculators. They pay barely $1600 on holding charges (Land Tax and Council Rates) vis $60,000 in capital gains.
The burden of such behaviour is instead placed on the community, where record high mortgages (spread over 30 to now even 50 years) reduce local expenditures, sending the domino of lower local employment, increased commuting time and greater survival imperatives on a world already drowning in insecurity.
It’s always a laugh on the Renegade Economists.
The related media can be seen on the report page linked above.