Sure property always has gone up, but sometimes it goes down for years and years or at best goes sideways. This property market is at an all time high based on affordability, eg wages compared to property prices. Then take into account the economy is running at 100% with near all time low employment and interest rates. People are struggling to pay mortgages now aswell as paying off their car, holiday plasma tv etc. The oil price rise is not helping them either. If rates rise and we have a recession the property market will fall around 40% from 2003 highs. Those that dont beleive this are either the banks, real estate agents or proprty holders that have most their money tied up in property and live in denial. Good on John Symonds for telling it how it is, hopefully he will be remembered as an honest businessman and will no doubt save a lot of people heartache.
Japanese population has been rising for the last 20 years and thye are not getting anymore land, they also have had 0% interest rates, their property prices are still 40% cheaper than they were 20 years ago.
Yes they also had a massive boom and used all the same arguments to justify paying ridiculous prices, same as those who bought dot com and telco stocks in 2000...its a new paradigm.
At best you wont make anything in property for the next 5 years, at worst you will go bankrupt, easy decision in my books.
