I have seen a couple of charts that compare the property market with the stock market.
Usually when the stock market is in bear phase, the property market rises, and when stock market is going well, property goes sideways or backwards.
True if the stock market tanks or stagnates there will be more money going into property. However the GFC can't last forever, and we may see good gains on the stockmarket over the next 10 years or so, if the China boom continues.
So unless you have iron ore or base metals to dig up in your back yard, it's a little difficult to catch a ride on the boom, apart from chinese property investors buying aussie property, and with the strong AUD, not much of that is likely at least currently. Property may well be supported by stock investors cashing stock to buy property, limiting downside to property prices.
However I would agrgue that the stock market is looking better than the property market for investment, and the path of funds will be to stocks, not property, except for people who actually need to live in the house or flat.
Once again I say, houses and flats are for people to live in, not speculative investment vehicles, linked to personal wealth and votes, pushing home ownership out of the reach of young Australians.
'Investors' and politicians who have taken part in this activity of pushing the prices out of reach in the average areas where families woudl like to live, and forcing new families to live in a place that looks like a park toilet, a long way from where they would like to be, deserve what I hope is coming to them.
