Australian

Housing Bust

Another WA Home Builder Under Threat of Collapse with up to 81 Homes in Limbo 

Burswood-based builder Builton Group, which trades under the brands Platinum Homes and Aspireon Homes, seems poised to join the growing list of residential builders in Western Australia gone bust.

Other Australian Home Builders Gone Bust:

• Builton Group
• Collier Homes
• Quattro Homes
• Pitaro Homes
• Nominated Homes
• Shane Crothers Homes

DYI:  I've been predicting a housing bust for Australia approximately 4 years running; a prime example how markets can stay far longer irrational than we think is possible or probable.  As yet here it is at last and spreading across the land down under like wild fire.  Homes are so wildly over priced prices will crack 30% and upscale properties dropping as much as 50%.  

What caused the run up?  China buying gargantuan natural resources making the miners flush with cash along with tax receipts increasing at a feverish pace.  The government went on a spending boom spreading their new found wealth.  Along came the U.S. downturn while Australia's boom continued and yet world wide interest rates dropped precipitously including the island continent.  Boom economy along with sub atomic low rates the seeds of a housing boom was born.

What caused the crash?  China's need for natural resources has dropped off and is back to more normal levels; hence the boom has ended.  Of course politicians thinking or hoping the boom would last forever has now had to do with significantly less tax receipts with many parts of Australia in recession.  Also world wide interest rates may be in the process of normalizing further straining properties ability to be sold.

There is more to come but once Melbourne goes bust, for the most part ended, as this city is the epicenter of housing speculation.

For those adventurist souls you may want to look into different investments in the land down under once the bust is in full bloom.  Even though this is NOT part of my model portfolio, however, I do pass on other financial info as it arrives.  Of course this is NOT financial advice just an informational site for your further study.

  DYI