Personally I think renting would be a safer bet then owning for the next few years. At least with renting you just need to pay the rent, not council rates, water rates,household insurance, maintenance, its all hardly worth it without capital growth.
Please tell me why you think property is going to be a good investment, over the next 5 Years or so. I mean all the perks are gone, like first homer buyers grant, free stamp duty for first home buyers.
The only thing saving property at the moment is low interest rates, but its funny how with these low rates, no one is really taking the plunge, not good signs IMO.
When the flow on affects of the NSW education cuts and QLD's jub cuts come into play, this is IMO going to put more pressure on the housing market, from more rentals to more supply.
The final blow that will break the straw on the camels back is when Abbot comes into power, He has made it quite clear that more government jobs will go. Most of these people are home owners and I believe, will have to move adding to the supply burden on the rental markets and sales.
The only thing that I personally don't understand is who will take up all this surplus supply, buyers will be waiting around like vultures, offering ridicules amounts hence pulling the price's down.
Not to mention the baby boomer's, who will need to sell their property to move into nursing homes, who will take up this slack, please educate me.
Mining will not last for ever, once metal prices retract, more jobs will go and more rental and housing will supply the markets.
I don't think all property will be hit hard, but areas that will be affected by unemployment increases will suffer, I have seen it first hand in curtain country towns.
Personally I don't wish for property prices to crash as I am a property holder myself, but cannot see where the next wave of demand is going to come from. Also with the high Australian Dollar, the international demand would be weak as well, I mean who in their right mind would buy property in Australia from overseas, just to sell again, against a weak Australian Dollar, all potential gains would be lost and possibly more.
Its basic economics 101,supply and demand which will determine Australian properties fate, it determine's all market outcomes, whether you agree or disagree.
