Very interesting ABC interview posted in this thread: Why Australia really IS different Thought I'd repost it: Extended interview with Chris Watling One comment that really resonated with me was, 'many things can prick the housing bubble'. And as much as we'd all hate to see that (as owners) and alas some here would even get burned badly, it can happen. I follow a much bigger bubble (Hong Kong and Singapore) as closely as I watch Melbourne and Sydney. And these bubbles have been pricked. Economies with roaring GDP of 3%+, unemployment of 3%, mortgage rates of 1.5%, even today. Previously thought of as impossible to burst, no one thought the HK/SG bubbles could ever be pricked. But - a few dumb and arrogant government policies (yes, Bill) and a few external shocks (hello China, oh and US, and Japan, and Europe) - and wham! Down 15% minimum already between October and now, if not 30-40% in some cases. And mind you, they still have mortgage of 1.5-2.0% interest rates. Not saying I think the 'bubble' is going to burst, but the bigger the bubble gets, the more cautious we should be. Be alarmed, very alert, keep your gearing low. It's all an artificial game, so play it smartly.