Canberra, We have a problem! Cancel Davos!

It has just been announced that the prime minister will not be going to Davos this year. This has been an almost compulsory “knees up” for the worlds pollies.

Prime minister will not be eating this

Prime minister will not be eating this

The reason given is that the Australian economy is worsening.

I would suspect that there have been some serious cancellations of orders for coal and iron ore. This means all that is left of the Australian economy is selling houses to each other. It could be that the clouds on the horizon are those of a category 4 cyclone. Batten down the hatches and check the batteries.

In looking for background for this story.

Also

“And we’ve had units with sea views dropping back to $325,000 from $350,000.”

Mr Harris said it was a chance to join the market, as management options allowed buyers to earn 11 months of revenue from their paradise then enjoy it for about four weeks a year.

“It’s probably the best way to have a home here and have an income.”

Christie Leet, of PRD Nationwide Whitsundays, said it was the best market he had ever seen.

“I’ve been here for 21 years and it’s the best that I’ve seen as far as affordability goes,” he said.

“The prices are low and the lending interest rates are low as well, which means they have great affordability.

“And there are some very motivated sellers out there – it’s a buyer’s market.”

Mr Harris said the prices wouldn’t go much lower.

“I don’t think we’ll see a lower price at this point,” he said.

“It’s a buyers market and it’s your turn to bargain.”

From the Mackay Mercury Buyers market for Whitsunday views

Yup! – Housing crash has reached the Whitsundays. When real estate agents in that part of the world admit to 10% drop, you know there is blood in the water. Currently the biggest generator of income in this region is from people who work on the coal mines in the Bowen Basin. They can easily reach 6 digit incomes, what is not apparent is that half the income of the miners is the coal bonus. This can be cut at any time slicing $10 k to $25 k from the household income.

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