Aussie property to crash by 50 per cent
<p>A US demographer has said Australian property prices could crash by 50 per cent, as part of a looming global crisis that could be worse than the Great Depression.</p>
<p>Harry Dent, a financial commentator who famously predicted the 2008 crash, has warned of a “major political and social revolution brewing” that could be disastrous.</p>
<p>“I’m talking about a second global crisis because we never solved the problems of the first one,” he said.</p>
<p>“We have $57 trillion more debt, real estate and stocks are more overvalued. I’m seeing signs. Bitcoin finally crashed, the US stock market looked like it was melting down, I think real estate comes next.”</p>
<p>The renowned doomsayer says it’s not all bad news however, and suggests a significant drop in house prices could lead to a buying opportunity for canny Aussies.</p>
<p>“You’re the number one country I would reinvest in,” he said.</p>
<p>“You’re on the cusp of the best part of the emerging world which will dominate global growth which is India and South-East Asia, not as much China. China’s workforce has already peaked and China has overbuilt its economy.</p>
<p>“This does not have to do with Australia as much. You have the best demographic trends because of the quantity and quality of the immigrants you attract from Asia, you’re one of the few countries that does not have a demographic slowdown problem like Japan or Germany.</p>
<p>“Your problem is you’ve got the second highest real estate costs compared to income in the world. I see Australia as the best house in a bad neighbourhood, but you can’t escape a global crisis.</p>
<p>“I think this time your real estate will come back 20, 30, 40, 50 per cent. That’s good. When young people have to pay 12 times their incomes for a house, that’s not good, so this is where the reset needs to come. I think you will have a recession this time.”</p>
<p>What are your thoughts? Think this prediction is on the money?</p>
