- Aug 2014
That is the first of a four-part series that aired last week. My father owns a lot of property but stopped buying a decade ago. Property in Australia is way too expensive and the returns are not there any more. The only place to get returns these days is the stock market, which is why it is also at ridiculously high levels - there is nowhere else for the smart money to go. There are two main types buying houses now - first home buyers who are desperate to get into the market, and speculators who are gambling on prices continuing to rise. I bought my house before this latest bubble and took advantage of low interest rates to pay off the mortgage so we are sitting back now laughing at all the idiots continuing to fuel the property bubble. A reckoning isn't far away. We won't be buying any more until after the next crash when there will be plenty of foreclosed houses going cheap. When your bartender and hairdresser think they have canny investment advice, it is time to sell out of whatever they are buying because the bubble is about to burst. It has ever been thus since the tulip mania of the 17th century.