Well I guess we can disagree for the moment; however, in some places we have already seen some horror stories in the real estate market particularly in the larger properties. I lived on Sovereign Islands on the Gold Coast up until a couple of years ago; walking the dog in the evening along my parade I spoke to many people that believed the same thing you do.
The saying on the Gold Coast for many years was that you would have no problem selling your home providing you could find an idiot bigger than you to buy it and it worked right up until the point when it didn’t!
I said earlier that back in the UK I bought my first very modest three bed roomed house in North Yorkshire and not central London I’ll grant you. In 1974-75 it cost me around 2.5 times the salary I was making working as an underground maintenance fitter at the local potash mine.
I know of a friends son an accountant (32) working for one of the big name firms has just purchased an inner city unit (Brisbane) that cost him around ten times what he is earning. By the way for around $80K PA including S/A these companies still demand their pound of flesh this young chap has just returned from a job in Canada on behalf of his company and as another sign of the times they flew him economy class.
I agree whilst interest rates are held artificially low and savers be dammed and anyone that can fog a mirror can get a 95% mortgage the bubble may yet grow.
How about we agree to look at this real estate miracle in another 24 months or so!
By the way I was expecting a few more house bricks thrown my way for suggesting we pass the enormous tax payer funded housing advantage known as negative gearing onto the next generation of house buyers.
Also by the way as a baby boomer why is it that when I find a radio station that plays the kind of music I enjoy they automatically put me in a certain type of sales demographic? I just like the music I don’t need to buy man diapers or colostomy bag’s or a nursing home place or plan for my funeral just yet!
