Love the mention for Australia He's right though, many real estate bubbles are going to go kaboom. Australia included. Exactly when is another point of discussion, but the further away from the median it goes, the worse the snap back will be. I'll stick with precious metal holdings thanks.
http://www.youtube.com/watch?v=NVPzZ1dUduU&feature=related Here's the other video. Wonder how much they want for one of those cube buildings?
I loved the comparison of two rising sectors of investment, if one is rising more than the other is rising. The one rising less is actually declining (albeit slowly). Factor in the rate of increase of the printing of money which is a rise that fits in between the two other investment classes. When you rotate the graph so that the printing on money is at a perfect horizontal, you see that the TRUE value of the increase in precious metals declines somewhat from its inflated value and the property market is really in an actual decline. PPSS
I think real estate bubble in China is bigger than in Oz. Everyone is crazy about buying property, rent is skyhigh too. Chinese government recently implement measure to curb RE speculation by limiting the number of properties an investor can buy. A tiny apartment in GuangZhou city can easily fetch 3,000 yuan a month... that may not be much for us Aussies, but it's a LOT of money for Chinese locals. And the apartment isn't even located in good suburb. Many Chinese are taking on mortgage with 10-20% down... pretty much like what Aussies doing.
Could be interesting, maybe China and Australias RE bubble will pop simultaneously causing the AUD to eat the USD's dust for a while..
I love the media. If history tells us any story. we would like the RICH , POLITICIANS, as well as the GOVERNMENT to do EVERY POSSIBLE things they can do (eg, media, Interest rate, 1st Home Buyer Benefits , Negative Gearing etc etc) to prevent the real estate bubble from bursting or send it higher. Please continue... Same principal as Precious Metal Asset Class, J P Morgan is manipulating the price of silver DOWN, and the media, politicians and the rich are bidding the Real Estate Market UP, the higher it gets, the cheaper falls. We will see some VERY UNDERVALUE real estate in Australia sometimes in the near future.