This is a controversial view as it has the potential to undermine the stability of our whole nation’s economy. Our banking sector is built on a foundation of housing mortgages.
Thought about buying a house recently? Or even selling? If you’ve been looking into the real estate market, or simply watching the news over the past decade, you’ll have noticed that housing prices have soared. It also would have been quite difficult for you to miss the housing crisis currently spreading throughout the country.
Is Aussie property really in a price bubble? Well, yes and no. I say yes and no because property has some unique characteristics that make it hard to compare to stock or cryptocurrency bubbles. Let’s have a look at a few of them now.
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.
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.
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!
I have no doubt that when Aussie property prices crash, it will be a specular fall. But right now, I can’t see that happening for a few more years yet.
We hear so much, about how high Aussie property prices are. That Australia hasn't had a recession in two decades and one is due.
The property mid-cycle slowdown is due soon. A lot of ‘tall’ buildings will open up in 2019. And other things that are the biggest, longest or tallest.