All Topics / Opinionated! / Whats the bloody Hurry?
From the Age
http://www.theage.com.au/articles/2004/07/10/1089000398978.html
He also predicts a “long period of nothing” of at least five and possibly 10 years when property prices go sideways. Just like 1989 to 1995, when prices went nowhere.
I tend to agree things will go no where over the next 5 yrs. Just like 89 to 95. We need to wait for incomes etc to underpin property prices.
What are your thoughts?
What are your strategies going forward?Yack
Are you suggesting a decline is house prices, and a stagnation of wages; or a decline in house prices, and an increase of wages.. or even just an increase in wages?
The problem with increases in wages, is that it will lead to inflation, and interest rate hikes. I think this boom has been so historic, because it’s been coupled with restrained wage growth (for average workers- not execs), low inflation, low interest rates, and high levels of economic growth- kind of an ideal combination.
I tend to think RE prices will level out, and possibly fall- there’s evidence they already have in some pockets- but as to wage rises… well, inflation city if that occurs. [hmm]
kay henry
My problem is that the rational part of my mind is telling the emotional part that it is time to wait but the emotional part is arguing that now is the time to act before I miss out on something.
I have a gut feeling that if I can just wait for a bit (but not too long – timing is just so important) I might do well based on the idea that the money is made when you buy.
Cheers
SonjaI agree with you both.
Sonja – I believe things will slow and there will be better buys in the future.
But I also understand where you are coming from Kaye. These are different times. But I would like to see some income increases to support current property prices. Sure that may mean interest rate rises but I would rather have some inflation than deflation. I go no idea where things are headed – so I am being conservative and not overextending myself.
Time to diversify.
Australia is not the only place where people live in houses.
And property is not the only path to wealth
Something for people to think about for themselves…is their goal to become wealthy by being a PROPERTY investor….or by being an INVESTOR.
Cheers,
Aceyducey
Hi guys
acey you hit the nail on the head, there are many other ways to make a dollar apart from property. Whats catching your interest at the moment?
I’m still into property but looking more at commercial and houses that we can have someone fix up and make a few dollars that way.regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Resources & businesses…preferably a combo of the two where possible….
Though I’m also looking at quite a creaitve property deal atm.
Cheers,
Aceyducey
I remember 1989 – 1995 when property prices were not moving much at all. This was also a period when I was buying heavily.
That period saw a drastic decrease in interest rates so cashflows improved while property prices had a delayed reaction.
The next 5 years will be different to that period but there is still a bargain in every market.
I will always be involved in property but as far as diversification watch what happens to oil over the next few years and what effect it has on various businesses – some will benefit, some will falter.
Cheers
Jeff
You must be logged in to reply to this topic. If you don't have an account, you can register here.