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What props up the Aussie real estate bubble?

Posted: Mon May 21, 2018 8:24 am
by Matt Flynn
What props up the Australian real estate bubble?

Easy loans cause such bubbles, as easy credit pushes up house prices. This has been shown historically in other countries.

And it is obviously happening in Australia ... http://www.news.com.au/finance/business ... 9cbe966ca2

In Australia's case, huge immigration and foreign investment also helped push prices up to stratospheric levels.

Will the bubble pop?

Re: What props up the Aussie real estate bubble?

Posted: Mon May 21, 2018 8:29 am
by theodosius
High wages and the fact people want houses in desirable locations and will pay accordingly. The standard of housing that people will accept is also a hell of a lot higher than 20 years ago too.

Re: What props up the Aussie real estate bubble?

Posted: Mon May 21, 2018 10:34 am
by Matt Flynn
I think that is part of it, but to send prices to the levels they are now requires a bigger "engine", in this case easy credit.

I wonder what kids think when they leave school now and compare house prices versus their first wage, must be an awful feeling.