the weekend rant

some thoughts for the weekend..

ignoring the world of hotcopper.. and being just in the real world, everyone i know that has or does own their own property all seem to be experts in the housing market. everyone has the same view along the lines of...

buy now!
buy now in suburbs A B and F!
i bought a house here and i made so much money, u buy now!!
buy a house and reno!
the list continues...

i remember watching a program on the great depression and how one stock broker before the collapse ran into a lil boy who out of nowhere gave him stock market advice. the stock broker then sold all of his positions because now everyone seemed to be an expert on the market so surely it must be time to get out.

seems like the Australian house market is in the same position.


Looking at what has happened in the USA you can see Australia going down the same path. not so long ago their market was booming and everyone was jumping on the bandwagon with the same calls that we still get here in AUS. its funny how only now, after their bubble burst that people say it was actually a bubble and needed a correction.

Just imagine if in 1 year from now, Australia's market does crash. how many people would say "the writing was on the wall a long time ago" or "it really did not take a genius to figure out where house prices were going".


We can also look at it another way..
House prices will keep going up, for eg. the average house price will be 1 mil by 2020... so what will they be worth in 2030? 2 mil? 2040? 3 mil?

Right now Australia is on the tipping point, some Aussies can't afford houses and if they keep going up that number will obviously increase. Funny how the government introduced new rules at the turn of the century to try and give the new older generation coming through a way to survive financially... but killing the newer generation that will one day be old and have no house and investment house/units to rely on... imagine the pension the gov will have to fork out then?


This bubble has created allot of wealthy people out of nothing. Its a strange concept that i do not understand...

and its only a bubble once it has burst...

"the writing is on the wall"