You don't need to be Nostradamus mate to make some simple observations that:
- housing in Australia is more expensive than ever before in Australian history
- housing in Australia is amongst the most expensive in the world
- every housing bubble has always eventually popped
- young couples on ordinary incomes simply cannot afford to buy
- the housing market has already had every conceivable market subsidy and distortion thrown at it
-the cupboard is bare for more taxpayer subsidies to prop up the magic pudding housing illusion
- paying trillions of dollars more to buy essentially the same housing stock that was 1/3 the price a decade ago is about the stupidest way to waste money that any country could come up with
- this is becoming a political issue because young people are locked out and they are not happy
- Sentiment is changing according to measures such as auction clearance rates, national stock on market, a new saving culture, the media actually publishing negative property stories etc
When I think about all these things happening in Australia today, I draw the conclusion that property prices are screwed for a decade. You of course are free to ignore all of the above and continue to believe that Perth is different.
I'll be putting my money where my mouth is by staying the hell away from property until we see a US style crash and presumably you'll be snapping up all the "bargains" on offer so if I'm wrong I will probably end up as your tenant, or vice versa!!
