Passive some interesting comments you have made there.
1) I notice you are predicting hyper inflation in the years to come. Now, if this situation was to eventuate what is the main policy to combat this scenario? That's right rising interest rates (and rapid rises at that), unless we want to turn ourselves into Zimbabwe. How do you think we and more importantly property prices would respond to this considering our debt levels are at all time highs of 160%+ of incomes, and the money printing you speak of will only result in further growth in debts. Back in the 70/80's during the last episode of hyper inflation, rates were into the high teens to solve the problem and personal debt levels were only a third of what they are now as a percentage of income. Would be pretty ugly. I heard someone say recently that there are 3 outcomes with respect to inflation. Firstly you have modest inflation around the central bank target, such as we have had over the past decade. Secondly you have deflation, and third you have hyper inflation. He then went onto say that after the sequence of events we have seen this year and the govt responses, option one has effectively been ruled out and we'll either continue on our destructive deflationary path or swing completely in the opposite direction to hyper inflation over the next decade. Only option 1 is conducive to good property performance, as deflation results in continued contraction in credit(main driver of property prices), while hyper inflation results in massive hikes in interest rates. Be careful what you wish for. If you believe hyper inflation is on the way, by yourself some gold.
2) What is this about governments propping up property prices. Why would they need to prop up an investment that in your opinion exhibits so much value - doesnt make sense to me? Never rely on any investment that is reliant on the govt. Look at history, any attempts to artificially inflate the price of an asset above its fundamental value, while potentially successful in the short run, always fail in the long run. Assets always revert to their mean fundamental value over time, and Aust property is well above the mean. I respect the fact that some areas will peform better than others, but this will only be a relative phenomenen with the better performers losing less than the others.
