Sorry, just saw your post. Errr, my answer is dunno! I am going to wait and see what's happening, what's around at the time.
I am thinking this way ....
I think there is a tremendous amount of uncertainty right now so I am in agreement with the bears that not too many people are rushing out right now to buy properties.
I think what will happen is a gradual discontent with bank deposits and I guess I am repeating what I have said in earlier posts.
I think that, for now, people who have cashed out of shares are sitting and grumbling how they have been stung and swearing to take things carefully from now on.
I think that will last for about 6 - 12 months depending on individual circumstances.
I think that slowly but surely the average bloke will come to realise that he is making Jack from interest in the bank and even that is being taxed. The worst thing for him is not even that, the worst thing for him is that his time is disappearing.
The time he needs to prepare for retirement is fast passing through the hourglass and he will get restless. Super will be going nowhere for him and cash is giving him nothing, less than nothing if he allows for inflation.
So what's left to the average bloke? Property of course.
He will look at the low interest rates = low cost of the loan
He will look at the high rents = low overall holding costs
He will look at the history of residential housing investment in this country and remember that his Dad used to always say "Safe as Houses" = low risk
When the average bloke realises all of the above he's not going to be satisfied with a few grand sitting in a low interest account in a high inflation environment.
That's when you will see a property surge just like you saw after the 1987 share crash, just like you saw after the 1999 share crash, just like you saw after the 2001 911 crash.
