Australians, individually and collectively, have bet everything on housing. And every year, we double down on that bet. There’s no certainty that 2018 will be the year our housing gamble goes bust. But it would be madness to be certain that it can’t. Aussie property investors in Australia could be in for a rough year.
JB Hi-Fi Limited shares have gained 4.89% today. At time of writing, shares are trading at $28.11 up from $26.80 yesterday. What caused the share price increase?
In today’s article, Ryan looks at the age-old story of bubbles, and why humans keep repeating the same financial mistakes again and again. It was originally published on 21 November, but the warning it contains is just as relevant today.
Is the Aussie property market ready for a fall? The experts seem to think so. One thing to remember in all this is that the experts have been predicting an Aussie property crash every year now since 2011.
You may have heard of the ‘prisoner’s dilemma’. It’s a standard example in a branch of economics called game theory. Well nowadays, the classical models of economics taught in universities have proven to be poor models of reality. Which brings us to the investor’s dilemma today.
What’s a young person or couple to do, then? Buy into the most inflated asset of all time and hope interest rates stay low enough, long enough for a new generation to come along and keep the Ponzi scheme going? I think Australian society has to come together to start addressing this growing problem.
Real estate business Domain has officially listed today, opening at $3.80 per share. Giving it a market cap just shy $2.2 billion.
Bad debts are at historic lows, and it’s proving a big windfall for the big four. But you have to think, if house prices had gotten so high and had the consumer stretched to breaking point, you’d expect bad debts at the big four to be rising, not falling!
For years, there’s been no more reliable investment class in Australia than residential property in our major cities. But increasingly, it looks like 2017 could be the year that changes.
The boom times are here for everyone it seems…Well, not everyone. The poor old Australian stock market is lagging behind in this period of record highs. In fact, it still needs to rise about 17% to get to the levels of 10 years ago.