Is it wrong to welcome the upcoming housing crash?
I contacted a developer, looking at a flat, nothing special, in a reasonable, but not great, area of Sydney. The price quoted was approx 11x Australian median salary. Doubtless it will get snapped up, perhaps by an 'investor', or boomer, or someone with money buying their kids a home for college. And I hope they lose their deposit, especially the boomer.
The correction is essential, I believe, for sanity to prevail. When I discuss this, people argue 'people want to live in Australia'. I put this in the 'true, but not relevant' category. People do, I guess. However, The Fed, and the Government, have a policy directed towards increasing house prices. Low interest rates, lax laws around foreign investment, corruption, high immigration, and bizarre rules around negative gearing - they can't be an accident.
And the lies. The endless bullshit and lies. Nobody can tell me that the property I looked at is worth close to a million dollars. That tin-can could never have reached the moon. I accept of course that the PM and the Governor of the Fed know much more about economics than I do. So it is somewhat mystifying that they've chosen to forget all this hard-earned knowledge whilst designing economic policy, and sticking their head up their ass.
Oh, I shouldn't take pleasure in people losing their deposit. Even boomers. As ever, it will be ordinary investors who get hosed. But I for one will not be buying the tulips.
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