Hello Steve,

Help me out here. You may be aware of a book, fresh off the press, by John Lindeman, :Mastering the Australian Housing Market" published in January this year.

Could the Australian housing market collapse? (p.34) – Lindeman claims comparisons with the USA and UK are "inherently flawed". The meltdowns in the USA and less so in the UK were precipitated by sub prime loan increases in interest rates (making repayments unaffordable) after the honeymoon period, a gross over supply of houses – I've heard reports of buy one get one free – vacancy rates of 10% (Australia is 1%) etc. According to Lindeman, the exact opposite of the market in Oz.

By contrast, Australia has a rapidly growing population – 450,000 in 2009 (2 imigrants for every newborn), a housing shortage (approx 100,000 homes) – while most western countries have ageing populations, low fertility rates and growing housing surpluses. Couple these trends with a booming Australian economy and you have quite a different picture. A picture that Lindeman claims will continue to support a strong property market in Oz.

Your thoughts please.

Robert I Machin MA (Mgt) FAICD FAIM ICF (CEG) APMPDirector, Machin Management Pty Ltd61 (0) 418 155 550 mailto:[email protected]