Many people think Australia is a country free of corruption. Corruption is something only poor countries have. However, my hypothesis is that corruption is just as deep in developed countries. The only difference is that the corruption in developed countries is formalised into the system. The corruption is woven into the establishment, so the elite of the country own nice buildings, drive nice cars, and live in nice houses, which puts an aura of legitimacy around their dealings. Humans are naturally snobbish. We evolved that way to increase the probability of survival. Those who ally themselves with the powerful are protected from enemies. Because snobbery is a natural part of our DNA, we are more likely to believe the rich and trust their rationalisations for why their corrupt dealings are legitimate.
The attempts by government, banks and regulators to prop up the property market in the past year has exposed this corruption for all to see. We live in a propertocracy. Government depends on property for taxes. Politicians invest in property. Banks rely on property for profit. Regulators will relax standards for property. Unions need a property boom to keep their workers employed and collect funding from industry superannuation funds, with the funds under management into these industry super funds growing higher and higher as union workers continue to be employed mostly in constructiom jobs. Central banks will lower interest rates and print money to prop up property.
The entire establishment is geared towards propping up property. As such, it makes sense to have some exposure to property, but not too much. Also diversify into stocks, bonds and gold. You don't need to stop eating avocado toast or drinking almond lattes to afford an investment property. Just live with your parents or flatmates forever and never have children.
