Aurelius1,Don't take this the wrong way, but you must have rocks...

Aurelius1,

Don't take this the wrong way, but you must have rocks in your head. Haven't you heard - the governments around the world are going to be handing out large sums of money, ensuring everyone is employed, forgiving people of all their debt and printing houses. Given the complete lack of supply and huge demand, house prices are going to shoot to the moon.

The other thing you forget is that the stock market is tanking. A lot of people are scared. Where is all that money going to go? If you said the safety of an asset class that never goes down, i.e real estate, Ding, Ding, Ding - you win. Money is going to flow into real estate and that is going to spur a lot of confidence. Markets will lag and might recover after 10 years, but real estate is set to shoot to the moon. I reckon 10-20% gains per year all while the reserve bank reduces their rates. I reckon we will be able to borrow infinite amounts at 2-4% before the end of the year.

Australia builds the best houses in the world. Investors around the world know that, and they are going to flock here to buy them. We will be able to generate enough wealth from building houses to create years of positive trade surpluses. Cheap money from all over the globe is going to flock in here wanting a piece of the action now that everyone knows the USA builds crappy houses that loose value. It is Australian houses the global market is screaming for and I don't think you fully appreciate that.

Face the facts Aurelius1. This worlds global crisis of confidence is going to be solved by the increasing returns on Australian real estate. This Keen guy is a joke and his hypothesis is complete hogwash. Seen all these things before and I am going to leverage up and make a killing.