asx versus real estate in the near future, page-14

wealthcc

Fair enough you do not believe in the 30-40% drop accross the board, have to admit I see a more likely outcome as a more modest drop and a long period of price stagnation. Prices here in Perth for example woulkd have to stagnate for 10-15 years, excluding any drop in price for growth in real estate to return to historical levels after the growth over the last 5 years.

So in reality when you take into account all the factors stacked against any solid gains from real estate in the short to medium period, why would large amounts of funds move from the share market to property???.

If anything money will be left in high interest cash accounts rather than the share market or property.

I mean why would anyone want to put money into an asset that in most cases requires leveraged borrowings, has high entry and exist costs, low liquidity and low yields and potentialy negative or at best nil capital growth over the next few years. When they can leave it parked in cash managment accounts and get an 8% return, or opt for the share market where many stocks are giving a net yeild of around 5% plus, a potential capital growth and high liquidity if need be.

there will no doubt be times again in the future when property is a good investment and will give better returns than cash deposits and even the share market, but that time will not be over the next few years