Well for starters really how can you say we have a shortage of land in Australia...we are one of the least populated countries in the world...sure a lot of it is uninhabitable but there is bucketloads of land everywhere that is yet to be developed...its not like we live in japan or the UK.
Secondly this is a trading forum...we trade shares...we sell high and buy low...sure everyone knows the ASX always goes up over time...but sometimes you have to wait 10 years before it rises above old highs...the same with property if its overvalued.
Who is saying its overvalued....well everyone who doesnt have a vested interest...BIS Shrapnel sees 20% falls coming. The IMF just said every state in Australia is "extremely overvalued" except for darwin which just came in at overvalued. We are in the top 5 for the most expensive real estate compared to our earnings in the world...I beleive the other 5 are western countries such as the UK and NZ.
My point is not that property is a bad investment if you are willing to wait 5 or 10 years to make a return. But why would you if you can get 5% a year compunded from the banks...not have to worry about losing money paying rates and other expenses and trying to rent your property.
The writing is on the wall for short term heavy losses...I will be a buyer of real estate when the time is right.
Ive heard all the old cliches....time in not timing etc etc...but I am an active investor in the stock market and active in property.
Everything is pointing to a large downturn in property prices and at best flatlining.
