housing survey, page-65

Dhuy,

if you think that people will be borrowing more money to keep the boom going, to be able to borrow that extra $100K or $200K to buy houses in 4 years times at this current rate of climb, wages will have to increase at the same rate to match, which means goods and labor costs go up to be able to pay those wages, which means the inflation rate published will be well above 2% - 3%, our AU$ will drop in value against the US$ and everywhere else, which means RBA will start rasing interest rates by 1 full % at a time instead of just 1/4 at a time.

then on the flip side if prices go stagnent, in higher interest rates from subprime, and same deal wages have to go up to feed these fee's, so up goes goods and labor and RBA ups interest rates again.

I think its very safe to say housing is at the top of the trend, the only thing I can see that will put more heat into the market this year is if labor does go ahead with their $20K grant to first time home buyers.

but like any bubble, the more you inflate it the harder it pops.

I want a house of my own, I have the cash to buy out right, but i am very sure i will be able to get it around 30% cheaper or more if i just wait