New Zealand Finance Minister Bill English has told Business Leaders at Auckland’s Mood of the Boardroom breakfast yesterday that by international measures, Australia’s and New Zealand housing markets are “still way overpriced” even going as far to say they are higher than China.
“By any international measure, our housing market it still way overpriced. Ours and Australia’s are even more expensive than China’s. Is it going to stay that way? I would like to hear the case as to why it would,” English said.
ยป NZ housing ‘still way overpriced’ says English – The New Zealand Herald, 1st July 2010.
Even so, my uneducated Dad still wants to buy a second investment home!
I think a period of recession, high interest rates, and high unemployment should teach this generation of “wealthy” baby boomers a lesson about speculating in the property market. They won’t be feeling very wealthy when property prices start to fall and their assets are worth less than the mortgage (negative equity).
If you play with fire, your going to get burnt