The bigger question is , will we have a property crash ? I think that if we were to have a proper crash i.e. 40-50 then everyone except those that own their house outright would be in a bit of strife . Even those that own houses might find themselves out of a job as I expect unemployment would rise significantly .
Consider what things would be like if the unemployment rate went to 15% . House building would stop . House renovating would stop . Local holidaying would stop etc etc . Things would be pretty quiet .
Aside of all the doom and gloom that some people like to post , have a look around you . People are getting on with life . The population is growing , people are moving forward . When that stops happening , then start worrying . Sure , prices in inner Sydney are off their head but there's an awful lot of Australia than has hardly moved in 10 years . At the same time Australians still tend to be good savers or debt payers so we are still making progress .
I'm leaning more to a flattening ( reductions in some i.e apartments ) for a period until the world economy picks up . In my view that is still a couple of years away .
So , in the meantime , the normal investing rules still apply . Borrow sensibly and make your money work for you . Take advantage of low interest rates . If it turns out that they stay low for a long time then you won't have gained
but you won't have lost anything either .
Even if property stayed flat for the next 10 years , if you were in the property market you would have made 10 years progress on your mortgage .
Call it compulsory saving if you like . The sooner you can own a property the better off you are . Then all you have to worry about is an income to live . In Australia that doesn't necessarily mean working .
