Is Australia in a property bubble?

Mark Draper (GEM Capital) talks with Roger Montgomery (Montgomery Fund) about whether Australia is in a property bubble and what investors should be thinking about with the property market

http://www.gemcapital.com.au

10 thoughts on “Is Australia in a property bubble?

  1. Bubbles in housing markets are more critical than stock market bubbles.
    Historically, equity price busts occur on average every 13 years, lasts for
    2.5 years, and result in about 4 percent loss in GDP. Housing price busts
    are less frequent, but last nearly twice as long and lead to output losses
    that are twice as large 

  2. The human race is in trouble because it is unreasonable and irrational,with
    cults and religion in an age when science can explain everything better;it
    is living in a fantasy world that is not God/Geo-ve,planet Earth that gave
    and is giving life to all in its realm,and think that it can win against
    Nature.Australian property bubble exists within the Human Species
    inflation/bubble.

  3. Agree with Roger that housing prices will increase at a lower rate than
    previous years, the market will not be spurred on by financial deregulation
    (household debt going from 50% of DI in 1995 to 150% by 2008), lower
    interest rates and increase in double income households that we have seen
    in the last 30 years.

    However, some fairly blunt assumptions were put forward there, especially
    grouping all property into Australia as the one market. Just as the
    Montgomery Fund picks outstanding companies in the sharemarket, so should
    potential property investors select outperforming properties.

    Immigration will continue at a high rate well into the future if Australia
    wants to maintain good economic growth and a decent sized tax base to cope
    with the aforementioned baby boomer tsunami approaching retirement. In the
    IGR released a few days ago, lower immigration led to lower economic
    growth, higher unemployment. It is in Australia’s interests to have high
    net immigration.

    Add to this that 90% of immigrants are settling in biggest 4 Aus cap
    cities, we are becoming a more knowledge based economy with majority of
    jobs centred around the CBD, people want to live close to where they work,
    property is the most tax effective asset class in Australia (especially if
    you never sell!) and there are some pretty compelling reasons to be
    investing in supply-constrained inner city suburbs of capital cities.

  4. As long as they can sell you there money en enslave you there happy. What a
    bunch of lies. Australian property is going to crash so bad, that
    Australians wont know what hit them when it happens. Trust me it will
    happen.

  5. Its like Australians are proud that they have to pay so much just for a
    home. How stupid are they?????? Wow what a achievement, I am aloud to give
    the most of my income to the banks, and they even believe that its
    smart????? It just shows the Great Australian brain wash has worked. And
    there Government and big banks can control them, just because they can pay
    off a stupid building all there lives long. So Stupid. Australia please
    wake up your being robbed of your rights to enjoyment and a home at normal
    rates, Start saving, and get a life that has value.

  6. Great video! Thanks! Just a feedback, it would be much better if you do use
    microphones for a clear sound. Thanks again!

  7. every auction i go to theres allways a few chinese around they want
    property cheaper so they can buy more of them theres a lot of rich chinese
    coming to australia and there cashed up , i do carpet cleaning and im
    finding so many chinese home owners its amazing .houses will cool a little
    ,then of they go again no bubble all bull.the ploblem is there all lined up
    in our embassys wanting to move in with large suitcases full of loot.i dont
    blame them australia is the best place on earth if you have a lot of money
    australia is the place to be .property will just keep going up .yes there
    will be a small bubble ,but these people dont care there got the loot ,they
    dont need to take handouts they collect rent.

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