The maximum rate of acceleration. At that point, you’re getting faster, but you’re getting faster more slowly. And finally, you reach maximum velocity. At that point, your acceleration is zero. So you’ve had a peak and a fall in acceleration before you reach maximum speed.So .
that’s the reason why these things can be so deceptive because it’s actually an acceleration factor and acceleration is complicated for people to get their heads around.Ryan Okay. So you’re saying that house prices or like growth in debt – we’re talking about growth in debt or house prices. So say I’m in a car and I’m flooring it on the freeway and I reach km/hr, which is the max speed here in Australia. And then I let go of the gas, I’m still obviously moving forward towards my destination. Is that the equivalent of- like that moving forward, is.
that the equivalent of growth in house prices? Or you talking about that’s the equivalent of growth in mortgage debt or acceleration of mortgage debts.Steve, It’s equivalent in rising of mortgage debt. Because that’s driving the whole thing, you’ll get the change in house prices will follow not your speed of the car, but the acceleration of the car. So once your acceleration starts to slow down, you might be a maximum acceleration of say m/s/s, you know? But you’re getting, m/s drive speeds.When that goes from m/s/s starts becoming .m/s/s, at.www.westcoastvaluers.com.au
the turning point of acceleration, that’s when your house prices will start to fall.Ryan Okay. And so, how do we, as everyday investors, keep tabs on that and even know when that’s happening?Steve Well, you can actually – my website has that data on it, but I’ll just give your people.