the aussie property bubble is about to pop., page-9

After the 1987 stock market crash money flowed into the property market, which crashed 2 years later.

Some properties in 2003 have barely reached the prices paid at the top in 1989.

A recent example, we thought the property market had topped in leafy Melb. 2 years ago, agent valued the property at the same as it cost in 1989. So waited 12 years to recover from the crash to break even.
The same property was on the market 2 weeks and sold
for almost 2 million. A paper profit of 800,000, or about 5% pa growth. This happened last week.

I cannot see money moving from the property market into the share market in the immediate future. But I could be wrong on this. Take profits from the property market and rush into the stock market ???? which is barely recovering from a bear market, in a fragile economic environment.

I also think it is the baby boomers and individual investors, unhappy with returns of fund managers and larger superfunds who are in the property market.

There are also a load of women in the property market.
The women missed out on compulsory super contributions, due to part time work and home committments. Now they are frightened there will be no pension for retirement, so they are funding their own retirement.
Read the report by Wizard Home Loans, took 3 years to do the survey, another 800,000 people will invest in property in the future. Higher income earners who can afford the ups and downs in the property market will continue to invest in property.

Compulsory super since 1986 has meant huge amounts of money invested in the stock markets. Considering these funds managers are restricted in where to put the funds, most of it goes into the stock market, world wide, where it is relatively liquid, rather than into property.

Loads of conflicting and alternative views out there, expecially todays news on the net about property.

I believe we have a more intelligent investor today, with more access to information, and tools/technology than was available 20 years ago.

For the majority of people, their investments are tied up in managed super funds, which invests in the stock market. Compulsory super means 9% of salary is collected by the funds each month, to further add to their coffers.

Just my two cents worth.
The only good thing is history shows us, all the markets move up and down at different times, but generally trend higher over time. So if you are in there long enough you should be a winner.

cheers