Australia may well be the next Greece.

a reply to: CB328

Its all over the Western world, you can shear a sheep many times but can only kill it once . The same goes for keeping people in permanent debt. The only real security is owning your own land, so everyone is becoming a tenant, and those that own the Banks are the landlords.

a reply to: khnum

I don't if it'll be the same with Australia, but Brazil is leaving a housing bubble.. And it's not so bad here, just 12 million unimployed. Hahah, save money and NEVER finance a house. It's a complete waste of money.

BUYING A HOUSE IS FOR SUCKERS: www.entrepreneur.com...

It deserves a new thread actually.

a reply to: jacob33


That about sums it up, in Auckland NZ the avarage Kiwi will have to pay a million for a house, thats about twenty years of wages.At present all housing is being bought up by investors because they can get more from the tenant than the Bank interest rates, blocks of investors mainly offshore, are wrapping rentals into portfolios.Over the last three years more and more people are living in the same house, you can see it by how many cars are being parked outside on the highway.The Bank interest rates for savers is a joke, because the real economy, just like Australias, is stuffed.The only upside is if you sell a house in Auckland you can buy the same house in the provinces for 75% less.When people realise they are getting played it wont be nice.

originally posted by: anonentity
a reply to: jacob33


The only upside is if you sell a house in Auckland you can buy the same house in the provinces for 75% less.When people realise they are getting played it wont be nice.

The lottery question is: When?

a reply to: jacob33


It cant be to far off, this bubble will burst,its a historical fact.How can a house worth 200k to build, be worth a million.Those with the high mortguages will be in trouble if interest rates go up.They get a revaluation, the Bank says your house has gone up a 100k since last year, they buy a car or a boat with a loan on the house,at the current interest rate. If the rates go up they will have a problem, if the rates dont go up its a sign that no one wants to borrow money, because their isn't anything they can do with it in this type of economy.So if they loose their job it will be dicey.I know high flyers that have been out of work for a year or more because their jobs have been restructured away.One things for sure the longer it lasts the bigger the mess will be . Probably the next time the Sharemarket takes a hit it might be the trigger, its been eight years since the last debacle, thats about the time for the next crash oh whoops its September! The Baltic dry is low, shipping companies are going bust. China's got lots of unshipped goods, American demand is falling,the debt ceiling is rising all seems about ready for the next one.

Think people look at world economic problems from a hilltop, not understanding that their current materlistic lifestyles is the result of bubbles have fueled enormous world growth for past few decades. So when these bubbles burst we will not be loosing anything that we shouldn't have had in the first place.

Returning to a society that lives within its means won't be easy. But if done correctly, should result in more affordable housing. Housing that doesn't require a lifetime of slavery to usury (banks) to purchase.

I say, bring it on already.