house prices

We’ll explain our ridiculous headline shortly. But first…

Yesterday we crossed the t’s on the March issue of Australian Small-Cap Investigator, today we just need to dot the i’s so we can send the March issue out while it’s still March.

If you’re a subscriber – if all goes according to plan – you should see the issue drop into your inbox after 4.30pm this afternoon. If you’re not a subscriber click here to sign up without delay.

So, while our compliance boffin is making sure our latest issue of Australian Small-Cap Investigator is publishable, here’s what we’ve been thinking about this morning…

ARMageddon.

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We were going to relay part of a conversation and a few subsequent thoughts following a lunch we had with three old broking pals yesterday.

The US dollar, US healthcare costs, US debt, and China were on the menu.

But, I’ll hold that over until tomorrow. Mainly because your editor is still thinking about it. So look out for that in tomorrow’s Money Morning where we’ll cover at least one of those topics.

But for today…

Well, that has to be the shortest lived reason for a housing bull run in history.

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It’s all happening here on Fitzroy Street.

With your editor writing two monthly research reports, two weekly updates for the reports, and a daily newsletter six days a week, plus all the research we have to put in for those newsletters, we thought it was about time an editorial/research assistant was hired.

Well, yesterday Shae started work and already we’ve been able to fob off a bunch of work.

Result!

But that wasn’t until she’d completed her first task – chair construction.

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Day three, and still nothing from the property spruikers apart from statements such as “of course increased population leads to higher house prices.” There’s no of course about it.

Gee whizz, if your editor used such flimsy arguments when tipping a stock in Australian Small Cap Investigator or Australian Wealth Gameplan we’d be locked up.

Seriously, the basic argument put down by the spruikers is this: chronic housing shortage equals rising prices, and massive population growth also equals rising house prices. Therefore property investors get rich.

In reality, if the housing shortage is that bad, and the population growth as high as they claim, we aren’t looking at a get rich quick scheme, we’re looking at slums and ghettoes as 35 million people squeeze into 7 million houses – not counting the holiday homes of course.

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