Scotty the reason people are buying dumps and doing them up is because these dumps are well located closer to where people actually want to live.
Same reason developers are zooming in on older house on big blocks that have been rezoned. one example close by was a house that went on the market for $650-$700k, it was levelled and 3 villa's built each went on the market for $520K. You could buy a bigger house on a bigger block but you would need to be in the outer suburbs.
People living in older houses will choose to renovate because it works out cheaper when selling fees and stamp duty on buying a new place is factored in, then there is location factor.
As far as Gen Y goes they will have the advantage that previous generations didn't, that is they will get inheritances where with older generation most stated out with little and few got significant inheritances.
My eldest brother was one of those that always rented, finally he brought a home after a few years he separated from his wife and paid out her share of the house. Few years latter the house had doubled in value and he could not resist selling. Had he waited a few more years it would have been worth double what he sold it for.
His Kids have all gone down the path of home ownership, I don't thing they are savy enough to pursue other investment but they have secured their financial futures.
"Maybe we will not see the say level of capital growth in the future but the is little doubt prices will continue to rise. May be not double in 8-10 years, maybe that will take 16-20 years."
"exactly Justis ------ I agree - I don't know what exactly the numbers will be, but they cannot be the same as the past."
pintohoo, maybe it can't but then again I would not rule it out.
I will put aside the debate on property as an investment but still maintain that at least owning your own home makes for a very wise inclusion of your asset mix.
