world markets about to collapse, page-49

re: property about to collapse (not the markets) Yes,

in terms of USA vs Australia.

But in USA people earn substantially more then Australia. The tax is massively lower, you don't have this almost 50% tax when you reach a thershold as well.

Therefore

(a) Income is much, much, much, much higher
(b) Tax is low, low, low, lower

Interest is tax deductable, imagine in Australia if you own property was tax deductable, they would double in price here people would go crazy due to the high tax rate.

Houses in the US are also built usually better then in Australia as well, they are of better quality. Sure, in some inner city areas they may seem expensive, but how much do people in New York CBD earn, heaps.

Interest rates in USA are also lower.

The fact is, Australia is in love with property right at this moment. The cycle will end, and you've seen yourself from 2000-2001 must booms don't end very peacefully.

Look at the history of 1800-2000, see any booms go on forever. The last big one like this in the property sector was around 1920-30 time.

Anyway, you won't lose long term, my argument is its not a good time to buy, a great time to sell, since you can find buyers to offload your property, which will be a problem for the Melb/Syd speculators running up properties in Hobart, Cairns etc. But why buy on the peak and have to wait extra time. Its a bit like buying an overpriced stock on its peak when you could buy it for 50% of its price....