***property still running hot*************, page-21

re: property will fall There are 2 things that can haappen imo.

Our economy has been growing for the last 15 years...usually you get a 7 or 8 year cylcle...we've gone a lot longer now. If the economy keeps growing at the pace it is which is almost impossible then the govt will raise rates.
Once rates rise business costs will go up...they will begin laying people off...less houses will be built as its harder for people to borrow the money so tradespeople will lose jobs etc etc. Credit cards interest will go up...personal loan repayments will rise...car loans will rise etc etc....only one way property can go if rates rise and thats down.
Now if the govt decides that rates need to fall it will mean the economy is slowing ...people are losing jobs etc etc...only one way that property will go in that climate and thats down.
Our economy is running at 100% unemployment at record lows it cant really get any better than now so make the most of it and get ready for tough times either way.
It is actually a lot cheaper to rent a proprty than own a property and if you arent making capital gains why would you bother with investment properties.
Oh and a double whammy will be if the govt decides to change negative gearing rules...they are looking into this now.

People who own properties will refute the above but only cause they have a personal interest just like real estate agents and those who hold stocks to talk their investments up.

Housing affordability is close if not at record lows.

Oh and those who think proprty never falls...especially after a 50% rise in a couple of years need to think for themselves rather than beleive the real estate industry.
Its just like the argument that the sharemarket always rises....both are true but how long do you want to wait to get your money back.

Good luck property owners...i think you'll need it..im out and hopefully will be back in 2 years.