The Martin Place soup kitchen
I think Doug Turek's article on central bankers failing to think about investors was terrific (see It’s time central bankers considered citizens, March 18). Unfortunately, taking comments literally, I suggest Doug visits the Martin Place soup kitchen which has been open for some time. While I doubt there are many central bankers availing themselves of the goods on offer, sadly, there are a substantial number of Sydney's homeless doing so. Perhaps the intelligent contributors providing advice in this fine newsletter could also come up with some clever ideas to help these folk.
Sydney house prices
Hi Alan, I recall you saying recently that you wouldn't invest in Sydney property (which is fair enough). I live in Sydney and have. Your comments however prompted me to look at the ABS capital city house price data (6416.01) to see the Sydney property boom everyone is talking about. I re-based all of the capital cities to 100 at the start of the data-set (September 2003) to see the relative growth rates. I was surprised to see Sydney was dead last in growth until recently when it sneaked past Canberra to narrowly claim second last spot. Sydney has only averaged 4 per cent annual price growth from September 2003 to December 2014, hardly what I would call a bubble. In fact Sydney prices would have to be 21 per cent higher than they currently are just to match the growth seen in Melbourne over this period.