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I'm in agreement with KG8 on this one. The bubble WILL burst, nothing is forever and the resources boom will peter out sooner or later. I'm nw retired and my income has reduced considerably, but I still get these things from banks etc. offering me ridiculous amounts of credit. They go in the recycling, mostly unopened.
I was fortunate inasmuch I built my house just before the silly season started and sold it a couple of years ago for 3 times the price. If I had been greedy I could have held out for another 50K and got it, had I been prepared to hold on a couple of months.
RE is overpriced by a huge amount, people are taking out loans that they will struggle for many years to pay, if ever. My mother used to reckon (in Scotland), that buying a house was putting a millstone around your neck, at the moment her words ring very true, and its not the way it should be.
I let my place go to what I thought was a young couple looking for a home, they were instead speculators who bought it, planted some more grass around the yard and resold it, probably at a nice profit. These are the people who have driven up the prices, not the lack of homes. Had I known, the deal would never have gone through.
Just my opinion.
Bill
Who puts social conscience before profit
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