i agree with what you said its all correct, providing the capacity to borrow and push prices higher exists. does it? I dont think so, unless new immigrants are somehow stepping up to the ponzi plate
Japan reached the point of debt saturation 20 years ago fuelling their asset bubble and its been deflating ever since, now you can buy property well below fair value. Australia occupies the top spot in terms of overpaying fair value in modern economies
property has been a loosing game 20 years now in Japan and if everything you have said on this forum was repeated to Japanese people they would be laughing at you
Now that we occupy top spot in overpaying for property why would that continue? what widespread belief system exists out there still that property will now out perform a bank deposit?
Once many quarters of negative growth are on the front pages, its all over as far as sentiment driven prices are concerned and sentiment and loose lending practices seems to be the key drivers of price
when it comes to all investments housing or stocks, in the long run fair value matters as the price will always drift back to fair value once speculative drivers have had run their course and the fear of missing out fades away
one could also say that the shortage premium people have been paying is also being worked out of the system. It used to quite severe in Perth, its all gone now
you talk about the "property market" like its some magic rainbow and money just appears to keep overpaying fair value in perpetuity. Well you are wrong in that regard, the higher you get above fair value and the more debt laden a country becomes the more vulnerable you are to the smallest changes.
there a quite a few "small changes" being concocted by the Greens and Labor right now... coming to a bubble popping ceremony near you!
Its going to be an interesting 12 months from now, maybe the US will have a miracle 12 months and pull out of its hole and all will be good. Somehow I dont think so
