Now before you shoot me I love property and have bought 4 positive cash flow investments in the last 12 months in Sydney.
It appears we are in a 10 year flat cycle and here are my concerns for a lack of growth in real estate …
Affordability … All banks will be reducing down to 70 – 80% LVR
Building materials and land subdivision cost are skyrocketing …
Valuers are not evaluating properties with rising costs
Immigration is it the answer
Rising interest rates
Generation buyers are investing more into the stock market.Commercial real estate vacancy rates are increasing. (business is tough out there folks)
We are being charged for everything and now "water" charges are increasing.
Cost of living for young families.
Rents increase kids go back home and bludge off mum and dad … if they are still married.You make some good points, but the population is still growing, and they have to live somewhere. there is only so long you can stay with your parents before you have to rent or buy.
Maybe the future growth will be in CF+ properties and less capital growth, either way, there will be a market somewhere, it’s just finding it.
Fundamentally there are only three basic investment choices 1.Stock Market 2. Cash 3. Property. Everything else comes under those headings. The money only ever moves around those three things. Its a controlled environment and dont think its the natural forces that decide which way things go. They guys at the top move money around and hence move markets around at their will and to further increase their positions. Its naive to think anything else.
That's not to say the layman cant make money, he can but recognise where the markets are at at any given time – same as the previous post and only ever act upon hard fact, not opinion and you'll clearly see where things are at.
Yes banks are holding back – deliberately for construction finance, means shortage of new dwellings, still more people arriving in to country, rents increasing supports this. All this can be proven to exist.
Everyone has their preferences of investment, choose one and be expert in it.
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