are you ready for the property crash, page-33

I have just read this whole thread and would like to make the following comments:-

• Since when did the price of a commodity depend on its affordability?
The price of any commodity is determined by how much it is wanted or needed (I think oil shows this point). The ever increasing population in Australia and the increasing shortage of accommodation WILL be reflected in the increase in prices and ever increasing rental returns.
• A lot of emphasis is given to the Median price in various locations. The Median price reflects the price at which most buyers are entering the market. It does not indicate that the price of any particular property is going down. In fact it does not mean the price of any property is going down.
• Official interest rates in the USA are 2.something, interest rates in Europe are around 5 and interest rates in Australia are 7.something. Economically this is not sustainable in the long term and rates in Australia will have to come down. I would not be surprised if we are at the current peak or very near it.


I am about to settle on two new investment properties one on the Central Coast of NSW and one in Adelaide. I do this in the expectation that you doom and gloom merchants don’t have clue what you are talking about. Try thinking for yourselves and not just follow the crowd.