Probably one of the more sensible articles I have seen written on the Australain property market recently:
A crash in property prices? Don't bet on it
Read more: http://www.smh.com.au/business/a-cr...t-bet-on-it-20111005-1l9nz.html#ixzz1ZwpANZLt
Perhaps because I have confirmation bias, I also liked one of the comments posted:
Shadow would be pleased with the last line.
A crash in property prices? Don't bet on it
Read more: http://www.smh.com.au/business/a-cr...t-bet-on-it-20111005-1l9nz.html#ixzz1ZwpANZLt
Sydney, however, has bucked the trend. Prices have risen strongly over that two-year period, and in the past year they have remained barely changed against drops of between 4 per cent and 7 per cent in the other capital cities.
Perhaps because I have confirmation bias, I also liked one of the comments posted:
All those "crash" religious sect characters are simply sickening. I have hundreds of them on my rental roll and they range from "old school" from 70s who seen $7,000 - yes seven thousand dollar houses in Sydney as "overpriced". These have lost a bit of their aggressiveness - those who realise that they pay three times rent now than it would have cost to own a house back then.
But the new Gen Y fans of Ed Karan are simply despicable. Barking up this "crash" myth since 2003? The promised " housing market tipping point " in 2008 turned out to be another 40% increase in prices - which has gone largely unnoticed by this bunch. But there is so much trumpeting of 3.2 % "slump" - it is unbelievable.
What you have actually expected - price increases in the straight line? Sorry - never happens. There are always fluctuations.
And as to Sydney and Melbourne - auction clearance rates are at the boom levels. Watch what happens when interest rates start to crash down, dragging down Australian dollar.
There will be plane loads of foreigners who have no other place to dump money deinvested from crashing share markets around the world. Brace yourselves for the second stage of the longest property boom.
Michael | Sydney - October 06, 2011, 8:39AM
Shadow would be pleased with the last line.