That annual gain is less than the cost of funding, so in real terms property investors are going backwards. Remember, property is a highly geared investment, so even small falls can have a major impact on investors' equity. ... Along with the benefits of the China boom, this is why there is fear of a wages breakout in Australia. And this is why Glenn Stevens at the RBA still has his finger on the interest rate button despite numerous signs of a weak domestic economy. ... Property Queensland Gold Coast Property

Original article: The Unconventional Economist: The Days of Easy Credit are Numbered by at real estate boom in australia -site:blogs.goldcoastproperty.com.au - Google Blog Search