a reality, page-17

Happy new year to all.

I have read various threads, posts and opinions regarding the direction of the property market and in summary there are some who are bitter about the property boom in the last 9 months, there are some who have done well and then there are the doomsdayers who thrive on bad news and hope for an almighty property crash.

My thoughts are that while debt is still cheap, migration levels are at there all time high and property supply is low, the property market will continue to be strong for the 1st half of the year.

I live in Melbourne about 10kms from the CBD and I go to auctions in various suburbs and see that people are still itching to pay top dollar to get in the market. Why? because they can? We had a mini property boom in late 2007 when interest rates were already 7.5-8%. Discounted variable rates are high 5's so we still have some room for movement.

Property ownership/investment is not for everyone but for those who like being taxed before the investment begins(stamp duty) like paying for rates, water and repairs and dealing with tenant issues then knock yourselves out.

Im sure if real estate was measured on an index simialr to the all ords, there would be less investors.

Anyhow this is my first but not last post and look foward to varying opinions from the property gurus.