bank bills new highs, page-17

GBX

It is good to see you agree the boom is over maybe you can explain this to the other property permabulls who think their property values and rental returns are going to continue to increase.

Especially considering you have all but agreed real estate returns were very poor for 10 years after the last property boom.

As for seeing opportunities

where is the opportunity,

where is the value in entering an investment NOW where the capital value of the investment is going to stagnate and very likely fall, that is going to return a very low yield, in most cases requires a leveraged position and the negative gearing benefits of this leverage are greatly reduced by changes to the tax brackets and lowering of tax rates. Not to mention higher entry and exist transaction costs and low liquidity.

When

the same funds can be invested into other asset classes that have the potential for higher capital growth and or yeild, have less chance of losing value have lower entry and exist fees and in most cases are more liquid

then invested into property in 5 - 10 - 15 years time to for close to the same capital cost as now and capitalise on the next phase.