just been for a pleasant walk in the local park. ...
thor, i'll try and stick to how it might end up and how it all affects our investing rather than what governments should do etc.
in our suburb half way between the inner and outer suburbs of Melbourne there is currently enormous building activity going on, and its happening all over Melbourne - and as each month goes by it appears to be developing into more of a frenzy ...... smaller quite sound 3 & 4 bedroom homes on just average size blocks are being bought for $800,000 to $850,000, and knocked down to make way for a two good sized, very smart, 2 storey 3 bedroom units - or sometimes a much larger home....... larger blocks get more units, and nearer to transport routes and commercial hubs appartments are also going up at a great rate ...... ok, its urban renewal which is a natural occurrence of any growing city, but its the rate at which it is happening that is alarming.....
.from a lifetime of working in the building industry my observations tell me that there has to be a signifcant down turn some time soon, guessing in the next couple of years or so - as supply begins to exceed demand - its all part of the economic cycle... and these things all seem to take a lot longer to play out than most people think......
so from that little doom and gloom, I think the banks should do very well in the mean time out of this, making the most out of this frenzied building activity as only banks know how...... for the moment the unemployment figures don't seem to mean much to the developers.....ie there is enough easy money for a majority to push this all along for the moment plus addition money from o'seas adding more fuel to the fire ....
that's not exactly where I intended this to go when I made the original post, but anyhow something to chew on
