London on course to become next house price bubble fatality, warns UBS – Telegraph

The Telegraph reports that UBS warns “explosive” house price growth since 2013 has fuelled an overvalued market that could see prices crash within three years.

Source: London on course to become next house price bubble fatality, warns UBS – Telegraph

Whilst this article is not surprising, it is still very alarming.

Like always, it will be the highly leveraged young people with massive mortgages who are most at risk.

Thoughts?

 

House prices: Negative gearing ‘a bigger problem’ than Chinese investment – Sydney Morning Herald

This is the top story in the Sydney Morning Herald. It’s well worth a read. Check it out!

via House prices: Negative gearing ‘a bigger problem’ than Chinese investment.

It’s interesting that the UK Conservative Party led Coalition has taken a very different approach to domestic property to that of a conservative government in Australia. In the UK, the Government has guaranteed the debts of first time home buyers, so that banks will be more aggressive with housing finance. Also the European Commission is proposing rules to tighten buy-to-let finance.

I worry about Australia. It seems to be increasingly dependent upon its mining wealth and increasingly strategic relations with China. Also Australia must be at risk of a property bubble bursting?

Any thoughts?