world markets about to collapse, page-31

re: property about to collapse (not the markets) Sabretooth,

With respect, I disagree with you regarding the USA. Housing prices there are much more expensive than in Australia. I will get some figures for comparison purposes.

The difference with the USA is that:
1)
owner occupiers can claim interest deductibility; and
2)
owner occupiers pay CGT on their principal places of residence.

In Australia:
1)
no deductions; and
2)
no tax.

Comparisons with Europe are valid from alifestyle choice perspective. There, the growing trend is to rent, not buy. Here, the emerging trend is to rent, not buy. The reasons for this are, however, somewhat different - necessity in Europe, lifestyle choice and wealth /$ management by choice.

I doubt that The Netherlands has the title of highest property prices. However, if you said Ireland, then I would have agreed.

As for property ownership, I first bought back in the early 1990s, and now own a number of properties, only one of which is still subject to a bank loan. All the properties are CBD based, in several cities. That includes several land banked properties.

I know full well about the vagaries of the property market, as my parents could not afford to buy until the late 70s and then almost lost their home in the mid-90s. I bought it to stop creditors getting to them.

My time horizon (for property) is 20+ years.

I also have several significant share positions in Australian and international shares.

As for shares, there has been some recently published articles suggesting that interest only loans are geared more into the share market than into the property market and that this trend is now growing.

I do agree, however, that a business can grow. That's why I am also in the process of developing a new consulting business, and why I have been a director of several companies (in my spare time), including one which has gone from sub-$2.0M to ~$15M turnover in the space of 3 years (and is now aiming for $20M+ turnover in 2004).

I have also been heavily involved in the VC Fund space investing in such companies as Red Sheriff, Redfern Photonics, Dilithium Networks, Conferserv, ManageSoft, Engana and Sensory Networks.

The point is, asset classes constantly move in differing directions, and at differing rates. Rsearching them and then determining an appropriate position (ie: to take) is what is important. This, I have done.

As I have said before on this forum, if the property market collapses, then I will be a buyer of further properties. If it doesn't collapse, I will then be researching where (and when) next to buy (my last purchase was in 2002).