Not only do we have Glenn Stevens (who some have said is out of touch, not worth listening to) suggesting the boom growth in housing is over, but the MD of one of the 4 banking pillars.
With historical levels of growth gone it's time to head back to investing in property based on yield and there is still a large gap in historical norms here... either prices still have a fair way to fall or we'll see rents boom. I know which I think is more likely.
Read more: http://www.news.com.au/money/money-...od/story-e6frfmd9-1226395093277#ixzz1xiizvVsjAUSTRALIA is unlikely to ever see the housing boom that sparked a massive rise in personal wealth across the country in the past decade, Westpac managing director Gail Kelly told the economic forum in Brisbane yesterday.
In a closed session, Ms Kelly told business leaders that the years of compound growth in house prices were over for good.
She also said Australians were rejecting the high levels of debt that allowed them to borrow vast sums against the equity in their house.
With historical levels of growth gone it's time to head back to investing in property based on yield and there is still a large gap in historical norms here... either prices still have a fair way to fall or we'll see rents boom. I know which I think is more likely.