Australia's property boom is 1 big pyramid scheme. Every where I go I'm encouraged to buy property.
I work with 12 people...with ages from 23-55, 7 of them have bought properties in the past 2 years, 4 of them already had... and I'm the only 1 renting.
Our banks are borrowing money from abroad because we don't have the money creation in Aus to keep them satisfied.
The banks aren't lending to developers cos that keeps inventory low, and prices high.
A bank is willing to lend me 10x my income (with rental income)... for purchasing property.
When this blows it's taking the country down.
The government will have to print money, causing our bonds and money to go to sh!t.
The situation is so serious, I really can't figure out how it's going to pan out. All we need is 1 little issue with China, and say buy buy Australian prosperity.
The government made a real big mistake encouraging property ownership in the last 18 months. 18% rise in Vic, 12% in NSW.
The world was deleveraging, and they said get as much debt as you possible can.
We were in a very attractive position with $60Billion surplus, now the countries in debt with nothing to show for it expect the 3rd most expensive property prices by income in the world.
www.ldp.org.au/
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