A diversion from the usual subject matter

Giving investment advice is a long way from the usual topics covered in this blog, but I thought I’d let my readers know that I have heard an interesting bit of information, which I’ve considered together with my own observations of economic behaviour in Perth, Western Australia over the last few months,  and I believe that a potentially important economic tipping point has now been reached in Western Australia. I believe this event could trigger another plunge in residential property values in Perth, a trend which was initially triggered by the economic decline of the mining industry in WA that began in 2014, which could be sustained by migration out of Australia, economic mismanagement and austerity by the federal government and foreclosures on residential properties in Perth owned by former FIFOs, and I think will possibly be the trend for the foreseeable future due to a long-term demographic trend of retirement-age baby-boomers leaving the city, or leaving altogether. I think there could be a down just around the corner that isn’t followed by an up. But I could be wrong.

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