Here comes the Avalanche, Tsunami, Running of the Bulls, Muslide – all at once.

G’day from The Hague on a lovely, sunny day.

Of course it comes as no surprise to me to read of a now 40% reduction in housing loan applications. What makes me laugh is the Analyst’s reasons. It’s really simple. Capital flows to where it’s a happy, warm, snug and secure place, and investors are not interested in putting money where, for instance in April alone, places like Darwin had a 1.2% fall on median house price, and the “Mega Market Darling”, Sydney had  only a 1 month drop of 0.7%. Annualise “that” dear readers!

The Reserve Bank has nowhere to move, Labor, even though it lost, as usual spooked investors with its nonsense, and people are now just scared of these rapidly increasing rates of depreciation.

I’ve warned of this unsustainable growth for years. I’ve warned friends to “get out”. Some have listened, some, sadly, have not.

It’s only going to get worse. I now have access to USD$10,000,000.00 to buy Australian Real Estate when I think it’s time to get back in. It’s definitely not now, and I believe my formula of the CPI line, less 10%, will be place where I once again become interested.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Advertisements
%d bloggers like this: