Investment and house prices

Population, income and money are the three major drivers of house prices.
Population growth income boosted the amount of money, and the duly golden 10 years did not run. Demographic inflection point, but income continues to rise rapidly, housing prices "growth" is still reasonable. Demographic inflection point, income growth is not keeping pace with, the money volume becomes the house price growth dominates, is approaching the bubble. From 2000 to the present, the "keep up" behind is the housing price drivers are actually changing.

There are 2 common mistakes in investing:
1, at the beginning of the large period of asset rise was frightened by high valuations;
2, in the top of the asset area and from the historical path to the current high valuation to find rationality;
The typical price-to-income ratio, 15 years ago, was high, but the double-high growth in population and income later explained that the static high valuations were justified at the time, which was confirmed by a typical "growth valuation". But growth valuations cannot be sustainable, and they always switch to the value-valuation logic of "income ratio, rent-to-sell ratio".

Valuations are superficial, and the core is what the assumptions behind them are, and whether they are ultimately proved or falsified.

Investment and house prices