Regradless of what you or I think adds value - reality is that building a house costs 'X' amount. It is what it is, we can't change that. The Carbon Tax will make things more expensive - that is a fact. Bricks and mortar has intrinsic value, people need somewhere to live.
Rental demand and returns will only increase from here, Australia will house at least 5 million more people within 15 years.
I personally don't like this, but here we are.
The trend and outlook is for more demand, not less. So what is going to cause the 50% plunge?
Are you predicting 20% unemployment, or are you predicting a Sub Prime type event here?
Nobody expects house prices to 'always' go up, but the drivel on this forum about 'burn baby burn', and 50% 'crash' is just crazy. That's not what is happening in metro areas. Maybe it is in small country towns, Gold Coast or 40km out of towm in Kath & Kim subsurbs, certainly not in prime areas with strong rental demand.
So unless your predicting 20% unemployment like Spain, or a depression....
So unless demand plummets, and peopel reduce the labour rates, building companies drastically reduce
