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  1. oracle

    will house prices continue to double every ten years?

    If you have studied the history of Gold prices you will notice Gold prices have so far only moved in line with inflation. Thereby, protecting your buying power. The only two asset classes that have done better than inflation over the long term is shares and property. So if you are after long...
  2. oracle

    will house prices continue to double every ten years?

    Hobo-jo, Normally, very few investor who know a bit about property invest after a boom has just passed. Look at Melbourne, nobody is running to invest their life savings into it at the moment. The same is the case with Perth. Long term I bet the prices are still higher then what it was...
  3. oracle

    will house prices continue to double every ten years?

    Intrigued If you are going to be so pedantic and just keep drumming your point.I have a challenge for you. I am willing to put top dollars on if you can find me a single property within 10-15Kms radius of CBD of any major city of Australia where somebody who bought in 1960 or even in 1991...
  4. oracle

    will house prices continue to double every ten years?

    Intrigued, I think you are going round and round in circles here. I have not disputed the fact shares are not a good investment. So do not try and prove to me this point. I know that. I have been building a share portfolio myself but am not prepared to borrow 60%-70% at over 9% interest rate on...
  5. oracle

    will house prices continue to double every ten years?

    I am not disputing how good shares investment can be. I think they are great. They can give you best of both worlds (high capital growth and high income). My point is there are 1000s of companies listed on the stock exchange. It is never easy to pick a winner like westfield. Yes, in hindsight...
  6. oracle

    will house prices continue to double every ten years?

    Correct. Plus remember rent increases each year. So in 10years time it would be substantially higher. Whereas your mortgage repayment fluctuates at around the long term average of 7.5%. Cheers, Oracle.
  7. oracle

    will house prices continue to double every ten years?

    Mate, let me ask you a few simple questions. 1) Were you able to get 70-80% leverage against Westfield in 1960? I could have got a loan against virtually any capital city property if I had the serviceability. 2) Were you able to re-finance every time you experience capital growth like I...
  8. oracle

    will house prices continue to double every ten years?

    10 yrs is a long enough period in the world of investing. Significant equity can be created in that timeframe if you play your cards right. I can guarantee you a lot of money will be made by people in real estate who know what they are doing in 10yrs time. Yes, I also believe in...
  9. oracle

    will house prices continue to double every ten years?

    IV, Your points make me question your logic behind being so bearish on property on the medium to long term (Think 10-12 yrs). Just ask yourself these basic questions. In 10-12 yrs time 1) What would be the population of Australia 2) What would be the average wage and based on the disposable...
  10. oracle

    will house prices continue to double every ten years?

    What was the population of Australia in 1970? What it is now? If there are only so many inner city suburban houses while the number of buyers far exceed who is going to end up getting the house? The one with the most money willing to pay the highest. There are houses affordable with average...
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