Triguboff Says RBA Rate Cut Forecasts Drawing More Home Buyers
Harry Triguboff, founder and managing director of closely held Meriton Pty, Australia’s biggest apartment developer, comments on Chinese demand for Australian homes, the Reserve Bank of Australia’s monetary policy and his expectation for the housing market. Triguboff spoke at an event in Sydney.
“We’re very lucky that China adores us. But of course, this is not their home. Their home is in China. And even though we’re very successful in selling to solely Chinese now, I always am fighting -- not that I need to because there are so many Chinese -- to get the Australians into the market. The market is good when the local people are in it and believe in it and support it. These interest rates make it impossible for people to buy.
“The Reserve Bank is going to cut interest rates. They’ve created a momentum; it’s very hard to stop the momentum. Just as they’ve started talking that rates will come down, we see more Australians trying to buy. They have the money, but they’re cautious. Once they know that interest rates are not going up, they’ll come up.
“We never know when there’s going to be a boom, nobody ever knows. The prices have been quite steady and rents have been going up. If interest rates go down, prices should go up. If prices fall, I’ll probably build less, and keep more.
“I keep most of my properties. If you keep the properties in this country, capital gains is there but you don’t pay tax. You only pay tax on the rent. And you don’t pay all the tax on the rent because you have depreciation. That’s the beauty of my business.”
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