Australian real estate bubble.

[ScrummyAdam]

The bubble won't pop unless there is mass unemployment..

[Sir Og]

Onodera, according to economist Scott Sumner the Australian central bank is doing a good job and as a result their "bubble burst" may never happen.

I don’t hear people talking about the Australian housing bubble of 2006.

http://www.themoneyillusion.com/?p=20340

He makes a lot of sense, so your only hope is for the Australian CB to mess up big.

[Sava]

if a bubble bursts in australia, does anyone notice?

[Alexander's Horse]

There is a risk of a property bubbe bursting in Australia, if interest rates go back to historical trends levels

[Donegeal]

I have relatives who live in Tazmania (I am hoping to get to visit them sometime in the next 2 years); but if I were to stay there, I'd be more interested in Western Australia... somewhere around Perth.

[Alexander's Horse]

Real estate "bubbles" are only bubbles if a. you are buying for profit and b. you have to sell when the market is down. Most people in Australia are buying for other reasons, home ownership is the number 1 goal for most Australians for financial security so the ups and downs of the market don't affect them as long as they can meet their mortgage payments. The profits or losses on their homes at any given time are notional and over the longterm they ride out the down times. This is an important investment principle which is sadly not understood by many people - profits and losses are only realised when sales are made. The same applies to quality stock.

Prices have been down in the area Onodera wants to buy so I have no idea why he is holding back. Prices are starting to creep up again so he may miss out on a good buy.

[pchang]

If Australia allowed their population to increase by 50% over a short period, they would start having to ration water in a big way.

[Alexander's Horse]

we're not going to do that, we're not insane

water is already rationed in many parts of Australia

[Dinner]

If Australia allowed their population to increase by 50% over a short period, they would start having to ration water in a big way.

True, but over a 10 year period they could easily build more reservoirs and with the new discoveries of natural gas even building desalinization plants is not unthinkablely expensive.

[Alexander's Horse]

This all goes to the myth that population matters, not so important in the post-modern world, can be a drag on your standard of living

[Alexander's Horse]

Sydney property market "flying", we bought in the inner west which had an 86% auction clearance rate last weekend, the best in Sydney

http://news.domain.com.au/domain/real-estate-news/sydney-property-flying-20130506-2j26j.html

[Alexander's Horse]

No problem, it probably reminded you of Wales, super pretty country NZ. I like it too.