Olly Newland’s Column, October 2010
It’s October, and the property market has NOT fallen 30% as was predicted by some — nor even by the 15% as those doom merchants, in a vain attempt to remain credible, hastily corrected themselves.
Instead the median price bobs up and down within the margin of error and the market remains essentially flat- as was predicted by me long ago as February last year.
The economy, along with the housing market also remains flat under the weight of increased GST and costs, and the hopelessly ill-timed move by the Reserve Bank to increase interest rates some months ago.
Interest rates will remain low and possibly go even lower in the time ahead because we are not out of the woods just yet.
Massive problems in the USA and Europe, combined with bubble economies in China and Australia could rock the world’s economies in the next 12-18 months and this, to my mind, will be the forerunner of a tidal wave of hyper- inflation as countries print their way out of recession.
Indeed investors should be putting a little aside into other hard assets such as gold (as I predicted in “The Day the Bubble, Bursts”), silver, platinum, copper, antiques and art, or if you like whiskey, perfumes and jewellery.
When inflation hits it will already too late.
Check the Gold chart:
What happens in Aussie happens here
Australia is suffering heartburn already from an overheated property market and, as I have seen many time before with the mad Aussies, there will be tears as their property market suffers an acute attack of indigestion.
In Sydney, anything within 10 kilometres of the city centre is now $1million plus for the most miserable shack — Melbourne and other main centres aren’t far behind.