the bubbles going to pop!!, page-23

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    Thanks hawkers,

    Now regarding : While Sydney and Melbourne house prices are high at almost 10 times income levels, the ratio is 35 times in the major Chinese city of Shenzhen.

    Some say that at 10 times earnings, the Oz. market is the victim of a Ponzi scheme, now what more 35 times earnings, they must have been flipping properties like hamburgers.

    IMO, interest rates, house prices, wages (linked to productivity) etc. have to return to historical norms. Meanwhile, China is not what it has been for the last 20 years - that should be enough warning that buying Oz. property is now a bad deal. The problem with todays debt ridden world is that too much is hidden in too many countries, I fear the next Black Swan will soon appear over the horizon.

 
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