What If Property Prices Keep Rising?

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Boston…beautiful one day, rainy the next.

I’m tapping out this brief note in my hotel room overlooking the Charles River. Through the drizzle, I can make out the spires of MIT…and Harvard University beyond them.

It’s nice to spot the silver linings on cloudy days. I copped a whack on my way here from Melbourne, missing my flight from Los Angeles to Boston. But the silver lining was a replacement fare that routed me through Detroit…with a first class-ticket.

At the pointy end of a plane you can rub shoulders with interesting characters. Chatting after takeoff to my seat neighbour — a New York-based non-profit founder — I learned that he had just addressed an investment conference in Sydney.

My seatmate recounted an interesting tale from his trip. He had caught up with a friend of his in Sydney — a successful young software developer worth more than $50 million.

Our tech whiz-kid is in the market for a city apartment in Sydney. Recently, he found a suitable one for sale…held by a Chinese investor who paid $3 million two years ago.

Our cashed-up software guy lobbed a $4.6 million bid, thinking it would be a knockout. But the vendor just laughed. ‘For anything less than $5.2 million,’ he replied, ‘you can get lost.’

The luxury end of Australia’s property market has always seen wild swings… and these transactions aren’t a perfect reflection of reality for most Aussies. But stories like this seem to be popping up more and more frequently — and they’re not unique to Australia’s capital cities.

The Boston Globe reports that property values in this city have reached new heights. After a brutal winter that dampened activity, Boston’s housing market has boomed — with mortgage interest rates near all-time lows fuelling the fire. According to the Globe, residential property values grew 12.1% last year…and property prices have continued to rise.

You might view bidding frenzies in metropolitan property markets around the world as a portent of doom. To my mind, it now seems the mainstream consensus sees Sydney and Melbourne property as a bubble waiting to pop.

That might prove to be the correct view. But what if the mainstream is wrong? What if hard assets become even more attractive to investors in the years ahead…and property prices keep growing?

Jim Rickards views this as a distinct possibility. In fact, Jim has just laid out a theory that reveals the specific events, dates and timelines that could soon tip the world currency system into crisis.

I’ll dig into Jim’s view of the markets when I catch up with him later this week in Baltimore. But you don’t have to wait for my Money Morning report on that meeting to learn exactly how you can use Jim’s theories to protect your portfolio from potential collapse.

If you’d like to find out more about Jim’s views on property, stocks and financial market risk, go here to claim your FREE copy of Jim’s latest book, The Big Drop.

The Boston drizzle is easing up. That’s my cue to head downstairs for lunch. I’m hearing good things about these lobster rolls.

Before I sign off — speaking of lunch, no trip to America is complete without an absurdly large meal. At least, that’s what our publisher Kris Sayce told me before I left Australia.

If you read Port Phillip Insider, you might recall that three weeks ago Kris wrote longingly about the 1,080 calorie ‘Most American Thickburger’. This monstrosity features a beef patty topped with hot dogs and a layer of potato chips.

Well, Kris…I see your Thickburger, and raise it.

Here I am at Boston’s famous Eagle’s Deli, taking on their gigantic six-pound Challenge burger. It comes with a lazy five pounds of fries on the side. Don’t try this at home…

Cheers,

Tim Dohrmann,
Editor, Strategic Intelligence

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slewie the pi-rat
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Boston Concerts and the whole scene “on the Commons”, and Cambridge riots and tear gas were a ton of fun in the ’60’s.
Hey! Hey! LBJ!
then, LBJ gave up “governance”, and we got Nixon and Kissinger…
dead Kennedys all over the place…
man! did we have a lot to learn!
higher education is a life-long commitment. L0L!!!

wpDiscuz
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