I spent a month in Australia and New Zealand last year and decided it was the one area I would chose to live in outside the U.S. The people are great, property laws and courts decent, and the economy capitalist, so they will do fine in the long run.
Barnaby33 may be right about their stage in the bubble-popping cycle, and certainly knows their market from living there. I’d be more focused on the long run and have faith that their people and government will make for a bright future.
The Aussie’s dollar fall of about 30% makes their prices even more attractive now than one year ago. And yes, if you believe the US$ will fall in the years ahead, then Australian real estate should do well as a currency play.
