The Australian economy is now riding on the Eastern States property boom. If you earn $100kpa and your house is worth $400+ more in say 24 months, rates have declined, why wouldn't you refi, take out an extra $100k, have a great holiday, build a granny flat, a kitchen and an extra garage as well. With luck the granny flat might pay for it all....
I don't believe staff wages are that critical to the operation (within basic parameters of course - what I've seen Thai crews do for a company that prides itself on a great 'work/life' balance is sickening) but I agree it's very finely tuned. There will always be people with money and always backpackers. Backpackers are a sugar hit for the economy - cheap and fast. The idea is they will come back and spend real money 10 years hence. Regardless, once the music in the Au RE market (and possibly the 23yr non recessional economy) stops growing, the game will change massively, with luck there will be more Chinese investors gobbling up the assets or it will likely be quite nasty.
Fortunately Senior Management at Qf have inoculated themselves against such disasters thanks to our good work, so well done there! I'm sure they will be OK.
Last edited by V-Jet; 6th May 2017 at 11:38.