"id say our low vacancy rates provide a compelling argument for house price stability as opposed to doom and gloom"
so we are back to square one? lets go back to post number two and start again :)
With not so rosy outlook for base metal, there is a serious rethinking of the investment in pipeline by mining giants due to high cost labour and overvalued dollar. We have now started to see job loses in mining sector and not just in retail, manufacturing & contruction sectors.
Even with recent rate cuts property sector managed to show an uninspiring rise(Fear/negative feedback loop?) We do have some cushion left in terms of rate cuts but with rising job cuts across the sector, deferred investments due to high cost, with over valued dollar as it is, ageing baby boomer headwind right ahead, I am not so sure if property investment on leverage is such a good bet currently, I am not talking about people who are already sitting on huge CG due to credit expansion in last decade or so, I am talking about someone who is thinking of taking up high leveraged bet on investment property in hope of repeating last decades performance in next decade.
One more thing, Due to cyclical nature of resource sector many resource countries have a sovereign funds (qatar/norway etc.) where they park in boom time surplus and invest it for future generations. Just wondering, What do we have to show for last decade of resource boom, apart from a budget in deficit and a population with one of the highest personal & mortgage debt?
