I have just read a special report that Money Morning emailed me. The report is called What Every Australian Homeowner Needs to Know Now about the Coming "Second Wave" of the Credit Crisis.
Basically here is what is says:
- Rising share prices is backed by rising productivity. "What is the productive output of a house that causes it to continue rising in value?"
- Now is the worse time to buy Australian property because prices are at historic high and interest rates are at historic lows and will soon rise.
- Normally when a price bubble bursts there is a massive runup in prices (the article calls it a "super spike") before a collapse.