The toll on real people when the Australian housing bubble pops will be huge.
There's no shortage of advice about how to protect yourself, or even profit from the bubble's eventual burst.
1) Sell your house now. Immediately. The price to rent ratio is a neon light telling anyone with sense to cash out now. Take any profits while you can. Then, you can rent a place many times better than the one you currently own with a nice pile of cash. That cash will come in handy when prices realign and you can step back in. Those that win in bubbles are those with the sense to get out when the going is good.
2) Sell any investment property you own. Same as above.
3) Increase your savings. When China has its own day of debt and bubble reckoning, Australia's economy will slump. Live within your means. Ask yourself how you would manage in a one income household.
4) Short Australian ETFs like EWA. If you are a speculator, that is. Remember that timing is everything. Do so at your own risk.
5) Short the stocks of big Australian banks like Commonwealth Bank, ANZ, National Australia Bank and Westpac. As usual, timing is everything.