Are people saying that because some US sub prime borrowers paid a small premium to have a 'non-recourse loan' that Australia's property prices cannot return to their 100 year trend line???? that makes no sense
Australian property may not crash and burn like America. But IMO its going to return to the 100 year trend line over the next 3-5 years. A 30% decline from todays prices. The idea property prices will not regress to the mean is simply absurd IMO.
I think the catalyst for prices to really turn back towards their 100 year trend is a decline in temporary foregin students (not a flood in QLD). The drop in rental demand will cause investors to sell because the negative gearing of their current investment property becomes to high.
