houses will never be affordable rba, page-10

perhaps one of the best investments at the moment is cash. interest rates are high, the stockmarket is shakey to say the least and housing is expensive and yields are low.

HOWEVER, there is no getting away from the fact that there is a housing crisis in Australia. most recent reports tip that rent will rise 50% in the next few years. Also we are near the top of the inerest rate cycle. Soon rates will start moving down. As rents rise and rates fall housing will start to appear more attractive to investors.

on that basis I expect sideways movement or maybe only a slight fall in house prices over the next few years before prices resume an uptrend.

Our real estate prices are no where near the ridiculous levels they were in japan in the early 90's so they are not a good comparison.