You're absolutely correct, real estate & in particular the primary Australian residence has been the 'vehicle used' to increase one's wealth. Or so it seems? The actual wealth of an individual or family hasn't actually increased, well not on the back of an increase in their principle residence anyway. It may have in terms of other investments but the smoke & mirrors value increase of property is just that smoke & mirrors!
I look & listen here in Perth, WA where I live & it's all business as usual, what GFC they say? The next resources boom is here already & here to stay this time! Away we go again - property prices are forecast to increase significantly in the medium term & unemployment is set to fall again. I've noticed that job advertisements in Saturdays West Australian newspaper have risen dramatically over recent months & in particular the number of resources company positions has literally exploded to this time twelve-fifteen months ago.
Bottom line for me is that personal (family) debt levels are out of control STILL & as you point out once interest rates increase as they have to as the economy gathers momentum, people are going to be in the hurt locker...
I hope this makes sense to you, it does me or at least it did ;)
