AZL General Discussion, page-9700

Disagree. Property has held its value in history because the rises were subdued. In the past 20 years or so the prices have gone crazy due to low interest rates and borrowing costs. This is a different market in modern times and the same rule won’t apply. Properties are now over inflated and not in line with peoples salaries. What do you think will happen once interest rates get to 10% and many people (mainly in the eastern states) now have 500k to $1m plus mortgages. Meanwhile the cost of living is only increasing too. There is no way most of the population can afford to keep their homes in this environment. Expect massive firesales and plenty of houses flooding the market. There will be 30-40% drops in house values in the next few years IMO. Especially as more people come off fixed rates to variable rates. I saw that there are 100s of thousands of them coming to the end of their fixed rate period. You will see property won’t hold its value anymore. Better returns picking the bottom in the share market!