Great discussion, very valid points you make and something to add about flood situation and insurance, in my instance living below flood level in a cyclone prone area, my insurance increased over 4 times to $8500 this year which is approx 4% of what I paid for the House. This fact makes it impossible to get a rental return ftom this property if all costs are taken into account. This is being overlooked and I think will mean houses in flood prone areas will decrease rapidly over the coming Years.
Andy,
To add something to your valid point, not sure in mentioned already but, the aging population is going to add a huge supply to the Market in Time and will also put downward pressure on Prices as many own old houses in flood prone areas,and the inheritors of these properties will not be able to insure and Rent these properties so will be in a hurry to sell them as they have nothing to loose since they did not pay for them.
Also, being a Plumber and living in Qld, with the incentives to build new houses and the changes to Plumbing Laws which IMO will sent many older guys close to retirement out of the industry, there will be a huge increase in new housing costs will also stop people buying and add to price declines. IMHOOC and I am not real estate guru just some observations.
