Hi from Gaeta, Italy

Driving extensively across Italy it’s easy to validate an Economist that I met here opinion that the Italian economy is stuffed.

Similarly, you’d have to be living under a rock not to see that Australia’s real estate market is in the 15 to 20% range of a 100% correction.

My prediction is that prices will correct to below the CPI line drawn since 2001and that will be the point at which I may re enter the real estate market.

Example. I sold a small 3 bedroom house in 2002 for $199,000.00.  CPI puts this house today at about $305,000.00. It’s last sale was $485,000.00, crazy money.

Expect the correction to see this house in the high 200’s. Then and only then, would I consider buying.

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