excuses excuses, page-34

I have just listened to one of the most reasoned views on the current world economic climate by a well respected analyst at high level. I have picked a couple of interesting points.

Fact US subprime is not going to be duplicated in Aus.

Fact subprime in Aus is less than 1% of all mortgages.

Fact subprime in the US is 15% of all mortgages.

Fact US have an over supply of housing stock.

Fact Aus has an undersupply of housing stock.

Fact US houses in the subprime end are poor quality.

Fact Aus houses are good quality at both ends.

Fact demand for housing 'buys' in Aus is slowing due to affordability, but will not last.

Fact rents are expected to go up significantly and will remain so for some time.

Interest rates have peaked.

The Aus share market is expected to remain relatively flat for 3-5 years but good returns can still be had with selected sectors/stocks.

Aus housing demand is expected to increase, along with prices.

Very brief notes, however those seeking the huge falls in property in Aus are in for a very big disappointment and will quite simply be left in the wake of the market. The time to buy is when prices have corrected and before demand comes back on...that is very close, if not now and toward the end of 2008.

Have a great day...I am :)