As we are informed frequently a strong boom in property prices, particularly in parts of Sydney and Melbourne is fuelling a property price boom. Had an interesting chat with a fairly savvy Chinese lady from Malaysia who runs a newsagent near me. She has a warning. The Chinese investors are borrowing tens of billions from Australian banks for these purchases. If there is any trouble in China which results in them needing to repatriate their money to China ASAP, they will exit much faster than they entered, in a tsunami like wave which would collapse prices, which could put our banks into a major crisis. Interesting. Take care.
