Government regulation – clamping down on international investors, talks about reversing negative gearing
Oversupply of housing – apartment markets are in oversupply in Sydney and Melbourne
Higher interest rates – cash rate may go lower but not likely to be followed on by banks, in fact banks are pushing them up for investors.
Economic trouble overseas – China’s economy slowing and stockmarket crash and some large European banks going down.
International war – Turmoil in Syria and escalating wars.

I’d say all of the above is equal to… KABOOOM!! to the real estate market.

I have chosen to be on the sidelines for now.
I believe property values in general are sky high right now. When looking at long term trends and property value fundamentals I think it is not the time to be in too much debt.
Artificially low interest rates and international investors are keeping the property bubble from bursting for now but what will happen when interest rates start to climb and the government clamps down on international investors.
With signs of economic slowdown i.e China stockmarket crash and economic slowdown, low commodity prices, Australian stockmarket heading towards bear territory, also tightening of credit to investors, apartment oversupply.
Not to mention that real estate prices are out of reach for most first home buyers.
Forgive me for sounding extremely pessimistic toward investing in real estate, I would love to hear from some investors who feel the same way and also the ones who may think that I’m completely mad.

Chuckeye