http://au.finance.yahoo.com/news/Tsunami-hit-Aussie-real-aap-3554936888.html;_ylt=Aq4wtUGY9AtLok.dsTPLHATCWo9G;_ylu=X3oDMTE4YmJuYWpwBHBvcwMzBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawN0c3VuYW1pdG9oaXQ-?x=0

Australia's love affair with property is about to turn sour as an "economic tsunami" looks set to hit world markets, American economic forecaster Harry Dent says.

Mr Dent, who arrived in Australia on Sunday, predicts the world will experience a second, deeper downturn, which will arrive between the beginning and the middle of next year.

Starting in Europe, the downturn will spread to the US, China and eventually Australia, he said.

"Australia is probably the best place in the world to survive this, but we do think Australia will not escape as well as it did from the last crisis (in 2008)," Mr Dent told AAP.

At the centre of the coming debt crisis is real estate, the forecaster says.

"People in places like Sydney or Tokyo or Miami say, `Hey, real estate can never go down here, we're a great place, everyone wants to move here, there's not much land for development', and what I say is that is exactly the kind of place that bubbles," Mr Dent said.

"Outside Hong Kong and Shanghai, Australia is the most expensive real estate market in the world compared to income."

Mr Dent said Australia's house prices would return to late 1990s or early 2000 levels.

Driving all these changes is simple demographics, specifically the peak of the baby boomers' spending, Mr Dent said.

"We predicted this (current) downturn in the US 20 years ago," he said.

"We said that in 2007 the peak number of baby boomers will reach their peak spending. They would have bought all their homes and then they will start saving for retirement ... and that you are going to see this downturn."

The drop-off in spending will affect everyone, even mighty China, Mr Dent said.

To survive the incoming "economic tsunami", Mr Dent said investors should sell their excess real estate and buy up assets in US dollars.

"Gold and silver are going to crash, they're a bubble," he said.

An interesting opinion and theory for us to ponder.

Australia is one of the wonderful country to live, you will love the place, the scenery and the wonderful places.

Agree with Stanleys, Australia has been the place that has seen very little destruction whether it is for natural calamities or human war like world war. Australia is the best place to live in. I probably don't think tsunami will hit Australian Coastal region.

Stanleys wrote on Aug 20^th, 2012 at 9:43pm:

Australia is one of the wonderful country to live, you will love the place, the scenery and the wonderful places.

Yes you are right to say and I love this country.It is full of beautiful views and its aborigines are really great to live with them and make the interactions.