The next time I'm at a Thai restaurant and overhear someone say they are going to look for a house I will rush out and put my hard earned into a property trust and borrow maximum dollars for a Melbourne pad.
This article and the claims by the author are an obvious guide as to why we had a bubble in the first place. Its becoming more and more obvious that the property spruikers and commentators have only come onto the scene in the last thirty years. They've only ever seen above average returns.
The property fundamentals are changing as baby boomers de-leverage and downsize. Fewer and fewer people want their big house and their big debt. Its a gradual unwinding and will continue for years ahead.
All those middle ring suburbs of Melbourne full of four bedroom homes that fewer and fewer people want.
However, I was at a Indian restaurant in Pt Cook the other day and overheard someone say they wanted to own a home. Maybe things are looking up after all.......... :)
