Well Molonski, that philosophy seems to work for you so good luck with it in the long run.
However, as I remarked (on Hotcopper) re the equities boom a week before the heavy correction began, there is no such thing as unlimited easy liquidity. And upon such easy liquidity both the stock and property market booms rely.
Despite the vast expansion in China, one must remember that it is not consumer-based but production-based for the Chinese are not net consumers and someone somewhere has to buy their finished products for them to continue to buy our raw materials.
The huge - and continuing - increase in land value across Australia is significantly linked to the Asian production boom pouring liquidity into Australia which, in turn, relies upon the US consumer continuing to buy 30% of the total goods produced on this planet.
And when the US consumer no longer feels rich because the artifically inflated value of his property is now going backwards at a rate of knots, he tends to stop buying.
To say that this - should it occur - will not affect the land value bubble in Australia in an appreciable way is to also believe in the story about the Chinese economy "delinking" itself from the US - a myth that is currently being sold on the basis that the Chinese market keeps going up even as the American one is faltering.
But the primary reason for this is because the Chinese have started using their stockmarket like a casino (up 500%, albeit off a low base) with even city taxi drivers borrowing against whatever they own to plunge at ridiculous P/E ratios into the fledgling market.
Wherea the Australian property market has already been deemed in an OECD report to be inflated by 50% above its real value.
I seem to recall a time when the land on which the Imperial palace in Japan stood was valued at more than the land in the entire state of California.
Nevertheless, I would dearly welcome the value of Aussie land continuing to spiral upwards. For what I purchased for 180K in Sept of 1996 I was offered 980K in August of 2007.
