they have tried their hardest to make that equation work by keeping interest rates at near zero for a long time and property prices are now at 1/10th of their previous average price
so I will reiterate in case you didn't hear the first time
"the old "property doubles every ten year" rule that people live by shows a complete ineptitude of 99% of the population"
About 2 years prior to the GFC I told my property loving brother that increasing commodity prices were inflationary and central banks would have to raise interest rates to curb it. I also said this would have an effect on property prices and that his "doubling of property prices every ten years" wasnt going to happen
I base my predictions on a solid foundation of 3rd year university mathematics and so far I havent been wrong.
I have my own bet with my brother that Australian property prices wont reach an average of 1 million in 5 years (made 5 years ago) and that bet is looking pretty good.
