I still can't believe I am reading a lot of the comments in here on property.
We are in a historic banking crisis and Australia is catching fire at this time. A partner and I have already purchased our first distressed asset and many property investors in here would disbelieve or be extremely alarmed at the purchase price. No, I will not disclose the details and some may howl at this however I have my own selfish reasons for non-disclosure at this time.
1. Our banks have a massive funding issue. 2. It is getting worse. I should perhaps have just printed these two sentences as the rest may muddy the waters and reduce the clarity of the situation.
You can have all the brilliant expertise in property on the old model, all the knowledge in the whole world and yet it will not assist you in a major correction. Don't be fooled that this is a mere 1968, 1974, 1982 or 1992 correction.
If all buyers were cash buyers in property your arguments would stack up. If our banks were not in deep manure from improper banking practices you could be viewed differently. It the international sovereign and banking debt crisis were not deepening I might agree with you guys. This has come to pass and is true from my research and proof of concept so I don't agree with you and offer a sincere heads up.
Gold bugs hmmmm. I disagree on many points with most gold bugs however some of us do understand banking and debt markets to an advanced degree. Go ahead do not believe that the trend is over and that this is a minor glitch in the Australian property market. I sincerely hope you get through it OK. I am not trying to talk down property it is just that it stinks as an asset class currently and this would be more obvious to most if they knew how the big picture dots joined up.
I only post to warn. HC will have no negative influence over this much loved and soon to be hated asset class so don't shoot the messenger.
And yes I own a house that I live in as you have to live somewhere. Its all about the debt and debt markets guys. The trend is your friend until the turn at the end. Houses are not liquid when things stuff up you have to be out early.
