Will you dismiss investment in property knowing of severe property shortage and guaranteed returns of 7% up (at least for the next 5 years until construction is revived)?
.......... and I stopped reading there.
Really?
In 1995 I have got my first mortgage at 9.4% pa. Before that rates were even higher.
During 90s property prices came off merely 5% off boom peaks.
There was no $21K FHOG
There was no stamp duty treshold.
There was oversupply of properties.
Which rock you slept under?
5% capital loss over 8 yrs unadjusted for inflation? Is that what your saying? Sounds stellar!
isn;t inflation your FRIEND when it comes to property valuations?
i thought inflation worked the other way against property - as in, 5% inflation just made your proerty 5% more expensive to replace, therefore 5% more expensive to purchase, therefore 5% more CG?
If property values are moving in line with inflation, then arguably so. If property values stagnant in $ terms, in inflation adjusted terms you've just been hosed!
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