Simple and Sustainable Forums: Sean - Viewing Profile - Simple and Sustainable Forums

As argued previously, the sharp escalation of Australian home prices since the mid-1990s has been caused primarily by a surge in land values money supply or new credit availability from lenders from fairly dubious sources, raising the banks' risk profiles by lending more to less qualified buyers in the hope of a payoff no matter how venal or unsustainable, which roughly doubled in size relative to the size of the economy, as measured by GDP

It would be interesting to hear from property bulls when it is *ever* a time *not* to buy.

Let's take the hypothetical scenario that prices increased to $10 million for the average house by next week.

Which one of the following arguments in favour of buying property no longer apply?

* You property bears just missed out on huge capital gain (ha ha!) - buy now so you don't miss out on more
* Supply and demand shows that prices are rising rapidly - buy now!
* This is evidence of property shortage - buy now!
* The population is growing at record pace - buy now!
* Established property locations become increasingly more attractive as urban sprawl grows - buy now!
* Interest rates are at a record low - buy now!
* Overseas buyers are also snapping up property - buy now!
* People buy investment property for their superannuation funds - buy now!

It seems the arguments in favour of buying property is applicable regardless of the price level for the asset class.

But have such arguments any validity at all then?

Thermal mass is only really beneficial inside the building, where it helps maintain a temperature range already under control, as opposed to being exposed to the more extremes experienced outside.Concrete is a pretty poor insulator, for example precast buildings that didn't used to are now required to be insulated on the inside to achieve compliance with the BCA for internally conditioned spaces i.e. residential, retail, offices...