Impending Australian property crash!

The Aussies also lead the world in [broken link removed]

A lethal combination for them, we have seen it all here or rather we are currently living through it.
 
ccbkd, interesting article alright, sounds convincing. But the source, The Trumpet is a religiously focused American publisher, looking for signs of the 2nd coming, and other prophetic end of days kinda stuff:

"The Trumpet seeks to show how current events are fulfilling the biblically prophesied description of the prevailing state of affairs just before the Second Coming of This post will be deleted if not edited immediately Christ"

Hardly an independent or unbiased source. America has great form when it comes to this kind of thing. The Puritans were always looking for signs and portents of God's will in the world.

Having said that, if what they say is true, the Aussie house partee is going to come to a very painful end with Mammon taking a right bashing.

Didn't the Mayans predict 2012 as the end of world as well ? There is serious competition in the prophetic disaster stakes, with the Greens now muscling in too.
 
I like the view of Jeremy Grantham who says:

'there are only 2 bubbles left in the world, Australian and UK property!'

Aren't Sydney property prices on average 10 times income? Anything over 4.5 is heading for bubble territory.

I find the whole subject of bubbles in asset classes and the irrationality of people who latch onto the nest 'hot' asset class extremely interesting.

Grantham has done a lot of research on the subject on his GMO website.

He says that all bubbles eventually fall to where they were prior to the ramping.
 
i think australia is due for shock, the australian dollar has risen too much and is making australia expensive, australian wages are very high ive heard minimum wages of $17, also dependance on commodity boom and chinese demand, any hiccup here will hit australia hard, there are many similarities to ireland except that it controls its own currency, when i was in australia in 2002 minimum wages were around $10 but crucially the australian dollar was cheap almost $2 to the euro and even cheaper against the american dollar and sterling, whatever you do do not invest in australian property
 
For anyone interested in the history of Financial Bubbles a good read is "Devil Take The Hindmost - A History Of Financial Speculation" by Edward Chancellor.
 
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