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28/07/19
18:48
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Originally posted by eclipse:
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I don't think average house prices across AUS will go UP strongly, nor go DOWN strongly.Auction clearance rates don't necessarily translate into significant surges in PRICES.I think house prices will more-or-less go sideways for an extended period of time and investors will see that they can get significantly higher returns in other (non real-estate) markets. In the last 10 years, what we saw with average house prices were an anomaly not a norm - Read this ABC article on not expecting another boom that we witnessed in the last 10 years - https://www.abc.net.au/news/2019-07-19/house-price-falls-are-ending-but-dont-expect-another-boom/11298992 So in short, I am currently neither a property bull nor a property bear - I think the GENERAL property market will go sideways (but always remember there are markets within markets - whether it is with shares or real-estate).I do think, however, that a prudent investor will be able to get much higher returns outside the real-estate market. p.s. I think people got side-tracked with the negative gearing debate - the real elephant in the room is the Westpac class action which will have a significant impact on lending and hence house price gains.
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TU from me eclipse. Houses, units and older low rise flats should hold up. It's the price of all the new apartments than will collapse. The latest bad news in this arena concerns the Australia 108 building in Melbourne. When completed (it's not even topped out yet) this building will be the tallest building in the Southern hemisphere. Residents started to move in last year, but are now reporting noises, cracking and fear.