Why bother caring what will happen in 2011? Property investing is long term. If you can afford to buy in 2011, do it and then watch it double every 7-10 years.
Australian Property Market - 2011
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Not sure if your kidding or a serious. The days of prices doubling every 7-10yrs are over. Capital Gains will be harder to achieve in the future.
Why would you buy knowing your going to take a price hit, rather than wait till 2013, and let the eventually selling absorb the price hit for you.
Yeah, that's what my father told me in 1999 when I was about to buy a house for $170k. I waited and waited for prices to come down and I ended up buying a similar house in the same area for $340k 3 years later. 7 years on and property is now worth $700k.
Last time I checked eBay, there were no crystal balls for sale. Where can I buy one?
As long as cap growth stays above 1.5% P.A for the next 10yrs i can say i did better then putting my money into an interest saving account and re-investing the interest.
Hopefully the forum is still around then so we can see if the resi property investors beat interest bearing accounts.
Hopefully the forum is still around then so we can see if the resi property investors beat interest bearing accounts.
I've got no idea (just like bluestorm) but here I go.
Sydney will start being the economic powerhouse again (when Barry gets in on 28 March) and will start leading the growth in house prices in Australia. This will then start rippling out to the rest of the country and when interest rates peak in three years time and the aussie dollar is back at 70 cents we will see the boom happen again which will then be followed by a bust and then another boom etc etc just as it always has.
When people say Australian property is overvalued by 40% etc I put this valuation down to the fact that we are truly truly the luckiest country in the world with opportunities galore and wouldn't you pay a premium for that. Not to mention we must be one of only very few countries in the world where most of us live so close to the water and you know what water does for property prices.
Sydney will start being the economic powerhouse again (when Barry gets in on 28 March) and will start leading the growth in house prices in Australia. This will then start rippling out to the rest of the country and when interest rates peak in three years time and the aussie dollar is back at 70 cents we will see the boom happen again which will then be followed by a bust and then another boom etc etc just as it always has.
When people say Australian property is overvalued by 40% etc I put this valuation down to the fact that we are truly truly the luckiest country in the world with opportunities galore and wouldn't you pay a premium for that. Not to mention we must be one of only very few countries in the world where most of us live so close to the water and you know what water does for property prices.
The last (pre-2003) boom we had was particularly long historically. That just meant that the crash period (which turned out to be a flatish period) was particularly long as well.
Booms and busts will, in my opinion, continue to happen as they always have (perhaps for different reasons each time). History has a way of repeating itself. Just as people hold the view that it will all be different from now on.....and it never is
Booms and busts will, in my opinion, continue to happen as they always have (perhaps for different reasons each time). History has a way of repeating itself. Just as people hold the view that it will all be different from now on.....and it never is
Yes, we all believe that booms and busts will continue, but the problem is property has not had the bust as yet. The people who seem to hold the "different" view are those that spruik property and think that the hugh CG of the past 15yrs, will continue.
In 1970, my old man purchased his first investment property for $25k. It's now worth $750-800k. Luckily he purchased several. 15 year ago, he stopped investing believing that property prices would stagnate. He's kicking himself now, but that's another story.
We were only having this discussion last night and in fact worked out that property indeed doubled every 7-10 years during hist first purchase 40 years ago. So it's not 15 years you talk of, it's more like 40 years.
It's the same ol', same ol'. Noboby believes it can happen, but it just does.
Whatever the case, well researched property still has good underlying value - it's a matter of doing your homework and being comfortable with the risk.
Nothing has changed.
Nothing has changed.
Not all of us buy neg. geared property you know.
That's commendable - all the best with that. You won't go broke making money
My old man bought our farm in 1972 for $70 an acre. Latest valuation in November last year $1050 an acre. If was to double every ten years price would be $1120 in 2012. Amazing isn't it.
There is always a reason and it seems to be different each boom / bust.
Yes, time will tell. I only hope you have the decency to come back here in 2 years to see and dissect the results...... unlike the many before you with their similar dire "warnings" of the crash to come in Q1, Q2, Q4, 2008, 2009, 2010 and so on. zzzzzzzzzzzzz.
Here's a CG chart for the last 10 years of SYD LGA. (If you don't like SYD LGA, then pick another Sydney location and I'll run up the chart for your choice of suburb).
I would contest that we had a boom till 2003, then a bust till 2006, then some growth till 2007, then a bust till 2009, then some more growth in 2010 onwards. So the way I read it, we've had our bust already.....and this looks like a perfectly 'normal' CG chart with sharp rises, flat periods, some dips, some high growth - repeated over and over.
Oh, BTW it also looks like prices doubled in that 10 year period from around $450K in 2001 to just short of $900K in 2010
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