Originally posted by nosirommit
It's this one we need to worry about.
As I've said many times, I believe on their own, the Syd/Mel markets will be ok, correction then stagflation.
But insert global financial event and all bets are off.
This is my bigger concern, and why I am positioned accordingly.
But I'm not going to sell my home, and neither will the majority of Aussies. Still gotta live somewhere and like most that have not entered property in the last 2-3 years, have quite low LVR, interest is cheaper than rent, exit and entry costs are high so will continue holding onto a long term CG tax free asset.
View attachment 1273061
That chart shows that it is debt that drives stock prices. And when houses became an asset to speculate on, and no longer simply a home to live in, that's when debt became the primary driver of house prices too.
