"don't forget that the property market it driven by emotion"
That is correct....
Yet you look at fundamentals to base your opinion.
If property prices do not increase in value dos that mean they are a bad investment?
Property yields will improve with interest rates set to head lower again over the coming months.... hence the banks coming out with what looks like lowball fixed rates.
6.99% is not cheap.....but compared to recent rates it is.
Theres that emotion thing again..
Rates will be closer to 5% next year which will increase property rental yields further and start to become attractive to investors and homebuyers alike.
And as rates come down, so do term deposit returns.
And thats not allowing for any property capital growth.
Yields at 7-9% will attract investors.
And once the last man jumps in..
property prices will increase.
....so not only do you get higher returns moving forward but a capital gain as the kicker at some point.
All in good time....
property is not an overnight hold, it needs to be looked at as a vehicle for long term growth with short term yields/passive income.
BTW.....Is Australia heading for a recession?
is that the same recession we were meant to have in 2003 ??
