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Housing bubble spectre raised

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Australian Broker | 09 Apr 2013, 08:00 AM Agree 0
Is Australia about to replicate the catastrophic crash of Ireland's housing market?
  • Wozza | 09 Apr 2013, 10:27 AM Agree 0
    Another prophet of doom. We have already gone through an adjustment since 2007/8 and I believe the Australian economy is in much better shape than Ireland. Our banking system is regulated and lends responsibly so why would anyone compare the Irish system with ours?
  • James | 09 Apr 2013, 11:18 AM Agree 0
    Wozza. Why do you label this guy a "prophet of doom" for simply outlining some downside risks, namely that the mining boom could unwind in a nasty matter. Whether it does or it doesn't is beside the point. But burying your head in the sand and saying that a painful correction is not possible here is delusional.

    Plus, he never said that Australia would replicate Ireland. Rather that there are some simularities that are worth being aware of that, in the worst event, could come back to bite.
  • NoTimeLikeTheFuture | 09 Apr 2013, 11:55 AM Agree 0
    Many of Ireland's characteristics do exist in Australia.

    I believe the Australian market has been successfully propped up by:

    1. SMSF's entering the market
    2. Australia's 888 visa encouraging property investment from Asia, raising prices on new property with flow on to existing properties
    3. Elevated mining incomes and strong employment, with falling interest rates

    A bust would hurt a lot of people but an orderly correction makes sense..
  • Tom of Randwick | 10 Apr 2013, 09:10 AM Agree 0
    Regardless of whether the market goes up or down, young people like myself are not getting involved.
    A lifetime of debt slavery for an expensive box in a crappy cookie cutter outer suburb is not for me... particularly given the indications we are in a bubble - even if there are voices that disagree, the dubious benefits of buying are outweighed by the huge risks and huge costs of property.
    The market has to come down a long way before I'll enter it.
  • Jim Kinnear | 11 Apr 2013, 09:45 PM Agree 0
    Leith Van Onselen is a permabear and has been exposed as making up a lot of lies about the aussie housing market - just google "Leith van Onselen Exposed" for details.
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