Perhaps a tad sadly we all of us here seem to agree with Martin North.
East cost property maybe the very worst place to park money but the headlines say it all …….. first home buyers signing up for more debt than every before. It's called cluelessness but within a tidal wave of defaults these guys won't bear the full risk. The actual risk bearers are bank shareholders who think they are safe because the RBA will come to the rescue. That's called stupidity.
Notwithstanding what was said in the linked interview I foresee a continued gradual decline in median prices because immigration remains a net positive ….. for now ……. and for now …….. global interest rates haven't caught up with government spending sprees and tax cuts in the US (and elsewhere). Once we start to see sovereign defaults in so-called emerging markets it will be another story. The local hand grenades won't seem that important any more.
There are still plenty of export oriented opportunities on the ASX which have no direct correlation to local property and construction. Should the price of these stocks fall due to forced selling they will certainly be worth a look IMHO.
