## property bubble ## beware..!!!!, page-18

BillyTea

I certainly did not call a stock market bubble, but then again I had not seen a bubble before. Over the last couple of years I have taken the time to educate myself and am now very bearish. Many of the indicators that were evident of a bubble in the stock market are now in evidence in todays property market although most likely only in Sydney and Melbourne. High PE, Low yield, every man and his dog wants to buy investment property, television shows on auctioning houses. Does this sound familiar. Some of the arguments I hear about how you can't lose on property and how migration is fuelling the boom remind me of the statements of Wall Street tech bulls explaining away how the rules have changed and that this is now the new economy etc.
The rules never change. I can't believe how people are failing to see the same symptoms that were evident in the stock market in todays property market. It was only 3 years ago. Today I read that in the mid 1970s 20-34 year olds made up 28% of low income earners today that is more like 44%. This age group is feeling the effects of having to compete internationally, casualisation of the workforce etc hence their living standards are dropping. So we have the next generation of home buyers being comparably not as affluent as the baby boomers before them. Who are the Boomers going to sell their homes to when they want to retire and move to the coast?

CJ