- Hedge-fund investor and economist say Australia in midst of housing bubble
- John Hempton and Jonathan Temper went undercover three weeks ago
- They toured western Sydney suburbs, the epicentre of the housing bubble
- They viewed housing developments and met with 20 mortgage brokers
- Brokers were advising them to lie on loan application documents
- Sydney’s poorest suburbs have properties selling for more than $500,000
An economist and hedge-fund manager went undercover and found that Australia now has ‘one of the biggest housing bubbles in history’.
Bronte Capital’s chief investment officer John Hempton and economist Jonathan Tepper toured suburbs across north-west and south-west Sydney to view housing developments and met with 20 mortgage brokers three weeks ago.
They discovered that mortgage brokers were advising them to lie on loan application documents about the deposit for a house and about income, the Australian Financial Review (AFR) has reported.
Mr Tepper, founder of research house Variant Perception, has used a number of charts to support his housing bubble theory.