When will the property market crash?
- Thread starter John Dawh
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It won't. Government wouldnt let it happen, they'll put in a larger first home owners grant, reduce stamp duty etc.
Too many home owners in Australia
How about adding something to the conversation rather than saying "I told you so, nanana" like a child
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- #5
Some people need to be smacked down over the patronising drivel they posted over the years.
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- #7
It always looks like a cheap shot having a go at people who put their neck on the line and make a bold prediction.
The Australian property market requires a correction and to suggest that it will never happen is about as bold a prediction as possible. However as mentioned by other posters, considering the governments manipulation of the property market I don't imagine that crash will happen anytime soon.
I think the days of presuming your home will provide most of your retirement funding are certainly over for now though.
The Australian property market requires a correction and to suggest that it will never happen is about as bold a prediction as possible. However as mentioned by other posters, considering the governments manipulation of the property market I don't imagine that crash will happen anytime soon.
I think the days of presuming your home will provide most of your retirement funding are certainly over for now though.
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- #8
You man enough to admit you have been wrong?
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Wow. The Scooby-Doo excuse.
"I would have right if it wasn't for that meddling Gubberment".
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- #10
No one on these boards have claimed there won't be corrections. Let's not move the goalposts. A lot of people here were claiming there was going to be an imminent crash and it never happened. Time has told that these people were wrong.
These are the people who, every time someone dares talk up property as an investment class are howled down with stuff like "you are dumbarse who believes in property spruikers" etc.
Whilst you and Scotland vary in the specifics of your posts, you've been having a crack at me for 10 years over my investment views.
Guess who has been on the button with everything they have said? Guess who'd be often wrong?
You guys are my bitches. I am your Daddy.
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- #11
Bunsen? Is that you..
Other than stating "no i wont", what else have you really contributed?
Over the past 10 years has residential property had greater returns than the share market?
I won't speak for Scotland, however my point has and remains that its not a good investment tool for many people who are still working out their career and in their 20's or early 30s. This was based on questionable returns and the restrictions that much debt places on your life.
- May 5, 2006
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You've been going out of your way to argue with me for years on end.
Yeah, I had all my eggs in the 'prices will halve overnight' crash basket.
- Oct 30, 2010
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The single biggest indicator is unemployment. The correction will occur when unemployment rises. IF there’s a big credit crunch in china for example, you’d expect that to impact Australia fairly significantly.
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Is that particularly relevant? (cant say I am privy to the apparent previous disagreements). The share market generally always outperforms capital growth in property.
- May 5, 2006
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'The correction' is already occurring.
My own house (just one in one area in one city) is currently worth what I paid for it 5 years ago plus compounded inflation plus a bit more.
It's also worth ~10% more than it was in 2007, so had I bought it then I would've effectively made on average about 1.5% per year in capital growth. Not so hot relative to inflation, and also a lot better than many others have fared.
Point being it went up a fair bit in the early to mid 2000s (well before I was ready to buy), peaked in 2007, dropped about 15% by 2009, stagnated 2010, went up a little 2011/12, stagnated a bit more then went up a little 2013/14. The last 6-7 years have all been 'correction'. The idea that the market can only 'correct' by a short, sharp crash in prices is silly.
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- #19
Well it is relevant to previous discussions I have had with that poster.
My point was exactly what you have said with the additional point that it also gives you a far greater degree of liquidity and options at a time in life when you shouldn't have any door closed prematurely.
- Oct 30, 2010
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yeah that's what i suspected; just making sure.
for sure. the major advantage of propety over shares is nobody's going to lend your average pleb a few hundred grand to buy shares. i would much prefer shares than my houses, but im a pleb
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- #21
for sure. the major advantage of propety over shares is nobody's going to lend your average pleb a few hundred grand to buy shares. i would much prefer shares than my houses, but im a pleb
I too am a pleb, though I've never tried to take out a loan to buy shares. Would be curious to hear how much more difficult it is than a home loan.
Reluctant Jim
Debutant
Use line of credit secured by your PPOR, then you got home loan interest rates, no margins calls and share access.
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- #24
You typically get a lower LVR. Despite fin inst's advertising high LVR's on some stocks, the reality is that's their maximum. Pound for pound, property will allow higher LVRs, so for the average pleb who is looking for a buy and hold strategy, property offers better returns.
