There is one key difference between Australia and say the USA, a country that experienced the devastating housing bubble burst. That difference is population rate. Australia is said to be growing by an equivalent of 1 new person every 91 secs. Whereas in the US for instance, the (official) growth rate is slowing down considerably.

So that’s…[Read more]

I am finding it more and more difficult to conceive that the interest rates will normalize again. Lets face it, if the interest normalize to the equivalent of say 7%-8% that would cause catastrophic effects to the borrowers cash flow. For one, rents would sky rocket (bad), and in same cases would be foreclosure (worse). Lets keep in mind that the…[Read more]