Loading ...Hi Goldie, Au$ definitely going down mainly due possible China slow down, and Australia’s main export is to China, so China slow down may have significant effect on GDP. Most of the manufacturing industry has gone to China, car manufactures have gone overseas. Australia’s economy depends mainly on housing industry , mining and foreign students (mainly from China and India), a a lot of them apply for permanent stay, one’s they finish the studies ( cheap ticket to stay in Australia.) House prices are ridiculously expensive relative to medium wage due to foreign buying and increased immigration. Millennial’s just can not afford to buy property. Property boom is just a big Ponzi scheme where the RE benefits greatly as do the governments, from local to Federal , stamp duty on purchase , GST on materials, labour and let’s not forget the Banks ( the Big 4 have the highest profit in the world relative to their size). When other western countries had property bust, Australia didn’t, so it is coming in a big way according to economist Prof Steve Keen. ( so far 10%)
You mentioned 3 bedroom house for $500 a months seems unbelievably cheap when average 2 bedroom unit is Au$300 per week , 40 Km away from City Center !
I believe Australian gold miners are grossly undervalued , and considering how low Au $ is, they maybe a good investment for overseas investors.
GT