Infaltion @ 4.1% !! Somethings gotta happen !!

Last report I read, inflation is now sitting at 4.1%. I'm watching closely, and with the current trend of "buy a house now, before they go up any more" mentality, I can see why it's on a steady climb. It's hard to believe that people are paying a Million dollars for a standard 3 bedroom house and treat this as normal and accept it as a sign of the times....

We're currently listed as the most expensive country in the 1st world (or one of them) for houses, and the media seems to be fuelling this madness by giving the impression that this is the "norm" and nothings gonna change. I personally reckon something horrible is at the dawn of happening... If inflation doesn't drop to 2-3% the RBA will just keep putting the interest rates higher and higher, and with the soaring rise in petrol prices (also helped along with the inflation rate) I can't foresee anything nice happening in the near future....

My advice would be to hang onto your pennies and don't buy anything in the property arena at this stage, we've had the boom, the bust is on the horizon. I think that either houses will be sold at 2 a penny soon, or the inflation rate will push up salaries to match their exorbitantly high prices. And if the current trend of "buy, buy" continues, I can't see why the RBA won't steadily push interest rates up to even past 10% next year. Either way, there's going to be a lot unhappy people out there who are already struggling with the "mortgage blues". Best plan would be to pay off all debt that you can, and adopt the "sit and wait" attitude...

Anyway, the RBA is announcing it's latest plans on the 6th of May at 2:30PM Sydney time, and my money's on the interest rates going up at least 0.25% and maybe even 0.5%

Just my ramblings, and I welcome any comments : )

Steven Q