I don't think anyone is bagging property as a sound investment. The ones being referred to as property bears simply see that house prices are over inflated. Personally I am very pro-property, but not at the moment. I think the term bears and bulls fits pretty well.
Obviously the bulls see no end to the run that has longer than it should have, fuelled by home buyers grants.
House prices 6-9 times the average salary is not a sustainable level.
For a 400k loan, every .25% rise means around 10k less borrowing power. With the expectation of another 1% at least this year, thats 40k less.....but prices will rise....please explain.
Can anyone deny that house prices rise when interest rates drop and plateau or fall when they rise......sorry, I keep forgetting the default response by the bulls....housing shortage is the key.
