As we all know it's getting more and more expensive to buy a house, and the rate of growth currently associated with investing in a house is just phenomenal, and obviously too good to not be a bubble. We all know that. However, WHEN will this bubble pop?
More and more houses are being built but the demand for it just continues to go up. And many houses are bought and just left to sit there, not even rented out, fueling the problem further because investors just want a safe and profitable investment.
What do you think the governments can do to avoid this? Put a limit on houses per person? Your opinions?
I wont call it a bubble because there is the demand and availability factor. The scenario is not only in Australia but also all across the developing nations and the business has grown significantly big as in the last few years. Many experts are predicting the continuation of this trend for decades. So, it cannot be a bubble and it may not burst in near future too.
In time of economic crisis all prices tend to skyrocket in this case the one of the dwelling would not be the exception, but in the long run that paralyzes the whole economy and let's not talk about the ecological problem it represents, put a limit on houses per person could be a good measure but not the only one, but everything is connected for example if prices go down at a very low price then would build much more housing and comes the ecological problem, I believe that much more serious studies about the environmental impact in the construction subject must be done but taking into account all people and not only to investors who ultimately only seeks to maximize their profits, Australia is a very nice place, and in that sense must be taken care of as such by his government.