my fellow traders, page-33

Hi Neil_WA, I am not sure where you got your figures for Perth. I work in Real Estate and 20km from the city housing is not that expensive. In fact I have worked in Real Estate for 15 years although I am essentially retired now and I can tell you all while rentals returns are booming don't expect a large housing pull back. Perth particularily might slow down but it will be a very soft landing before prices are on the move again (although at vastly more moderate and reasonable levels).

Just remember immigration will continue to flow into Perth as resorces are far from over plus it is the nicest state to live in (personal opinion...lol). That is something else to remember: Australian property prices are also high as opposed to Europe/USA simply because people want to live in OZ - who wants to live in Europe/USA with all the problems? To be honest, OZ is a young growing nation full of resources etc Europe/USA can't say the same. And who would really want to live there over Australia - maybe the insane!!!

Sorry guys, but housing will not crash in Australia simply because housing is the safest investment. If share markets hit the wobbles where does all the money go? Let's face it, buy a property recieve guaranteed decent rental returns and growth. How can I say growth? Buy a property and come back in ten years and tell me what it is worth. Property always goes up over time. There are dips, but always upwards on average. Can you say the same about stocks?

Stocks go up also on average but how many companies go broke? Housing never goes broke it is not a piece of paper but something tangible - hence the expression safe as houses. You don't get left holding a piece of paper. And remember the other fantastic thing about property if the growth slows or dips rental returns always increase fantastically. A property slow down always leads to a rental boom. So you can't lose if you are in for the long haul. Hence a property crash relies on people dumping, which won't happen with the increasing rental returns.

Actually you will see the rich get richer if property dips, just as is happening now as they continue to accumilate property. That is why people can't buy a house because some people are buying property after property and with real money not mortgages. That is why at 35 I am retired. After the huge 100% - 200% increases in property values does anyone really think a 20% dip in the short term is a major crash?

Anyway I have talked enough but here is an example on one property I own (I mean no morgages) why would I sell or not buy more? Paid $40,000 less than 10 years ago and was recieving $90 a week rent. Never cost me a penny...lol. Now the same property is $250,000 and renting at $200+ (I say that as rent is going up a lot shortly) per week. Would I give a rats if it pulled back 20% in the short term - NO!!! Especially as my rental return will become $250+ per week. I have watched it increase 500%+ with no risks. As I said never cost me a penny out of my own pocket.

Sorry guys but won't be a real property correction/crash the share market is in more danger. And as housing is a safe haven for money if the stock market falls money will flow into property. Just don't buy in outer suburbs make sure you are always near the CBD's. Martis why do you bother? You don't know shares now you know properties? Just goes to show you and anyone else who thinks the propety market is falling 30%+ are the biggest wallys on HC!!!