The Aussie reaction :
REA Group chief economist Nerida Conisbee said the uncertainty which emerged (from Brexit) could impact on the commercial property market in Australia.
Ms Conisbee said Australia tended to attract a lot of global capital for commercial property and, in many cases, would usually be competing with locations within Europe for this capital.
“With the level of uncertainty now in Europe and Britain, Australia will now look even more attractive for commercial property seekers,’’ she said.
You HAVE to laugh. People invest in property to get a return or see the value go up. Dead simple.
Australian property is already stupidly overpriced compared to every other country in the World. Returns are low, so there is no advantage in investing into an overpriced market. If the values drop, the rent’s won’t rise and the banks will be issuing a margin call. Risky.
Australia’s mining boom that propped up the economy, is over and there is no magic pixie dust on the horizon that will have the Viagra effect, so the outlook is flat at best but really downward.
The other reason for investing is because you think an economy will grow and you want to be in on the ground floor. Just answered that.
So why would a supposedly clever person say that?
Because she has to help keep the plates spinning. The ONLY industries doing well in Australia are building houses and refinancing houses. The 26 year unbroken increases in the economy (Nearly a World first) are about to end.