House Prices Surge says QBE LMI Housing Outlook

[PeterC]

yep exactly...keep the timeframe long enough and you mess with peoples perceptions of whats normal. 20% sounds WOW but over 3 years its really just saying 'things will go back to normal'. likewise if they predicted 'house prices will rise 100% in 10 years!!!' when you do the maths, its not that unexpected.

it makes the journalist more money than just 'yeah we think theyll rise at around 7% for the next 3 years, yeah so nothing unusual'

 

[Graemsay]

Leverage is great in a rising market, but it's a killer in a falling market. As a counter example to Ridin-High's figures, a 17% fall over three years would result in the $100K deposit being wiped out, and a further $70K owed.

Not a happy result.

Similarly, MichaelW's ignore the cost of holding the property (interest rates, depreciation, repairs, rental voids, etc.).

That said, all investments have associated risks. Ask those who put their money into the safe Icelandic banks.