"The Reserve Bank of Australia and most Australian economists...

"The Reserve Bank of Australia and most Australian economists say there is no bubble in Australian house prices. But Dent is sticking to his guns."


Well, ordinarily I think Harry is very good at making money for himself and plays on fear beautifully.

And sprukes mainly bull.

He does have a couple of things right this time though - one glance at any house price graph over the last 60-70 years of at least Sydney or Melb. house prices - tells you one thing -

this is almost for sure a bubble.

That said - I think what people feel is the best indicator of a bubble.

If you feel --

prices will continue going up
prices will go up forever
prices will definitely be higher next year
in a downturn --- it will come back

these are all strong indicators of a bubble -- are they in place?

you bet they are.

Is Charlie right about chinese buying?

One glance at almost any auction crowd tells you ------ YES - a resounding yes.

Who pays the most? Chinese.

Who beats Aussies hands down by hundreds of thousands of dollars at city auctions? --- Chinese.

If that money is coming from China and china has a financial/property collapse ----------- will aussie property be effected?

Well, what would you think?

If Chinese dissappear from our markets - just who will continue to push those higher prices?? Arrh, no one.

If prices started selling off - banks would get nervous and buyers would dry up --------- what would happen to existing places? I will leave that to you.

have a great day all

Pinto