please read this and prepare accordingly, page-85

there is no doubt that property prices will contract in Australia....but a bust ???

lets look at the facts.

the US rates went to 1% in the early 2000's while ours went to about 5%. As a result the US has ended up with more vacant houses than there are people in Australia. vacancy rates are reasonable in most parts of Australia but in pockets there is still an accomadation crisis

The recent US bull was built on a credit bubble to fund consumer spending. Australia meanwhile has been making real wealth based on real minerals being pulled out of the ground and sold.

the US is have been cutting rates in an attempt to stop financial disaster. They are now at the bottom of their interest rate cycle. They now have inflation problems and and further move will be up. Australia was much more prudent to begin with. while the US was dropping rates to prop up the economy and ignoring inflation we had the luxury(??) of further rate rises to contain inflation. we now find ourselves at the top of the rate cycle and subsequent moves will be down. (good for home buyers)

That all said the world is in a bad way and i have no doubt our property prices will move down. but thanks to some good economic management in this country during the lead up till now I believe our landing will be much softer than that of the US.