You're obviously not renting.
Actually, I am. I wouldn't buy into a massive bubble like this unless I was looking for a high risk, high cost, long term investment
For most of the renters I know (Mrs Leafblower is a property mgr) the rent is equal to the mortgage repayments... and in some cases, a litle more.
Mortgage payments don't equal investment. A good portion of a mortgage goes to the banks as interests and other costs, which is lost for the buyer of the property.
Ask any
independent financial advisor, and they'll tell you that the stock market outperformed real estate consistently over the last two to three decades.
This may sound weird, but if you actually run the numbers, it works: Instead of buying, rent and spend the difference (there is one in most places, although property folk may want you to believe otherwise) investing the stock market (buy now, it's a good time
), and you'll come out in front after twenty years. Doubt it? Work through an example using average earnings, house prices, real estate and stock market gains, and you'll see what I mean. Assume similar risk profiles when selecting mutual funds..
ABC news has just reported that one iron ore exporter's clients are asking for their shipments (to China and India) to be delayed.
I wasn't saying growth will not slow, but it won't stop (i.e. China will not enter a recession as per the technical definition).
PB