I’m tipping house prices to surge another 20-30%, pegging it down to supply shortages, construction delays/interruptions, increase to inflation, owners not prepared to sell, offshore ownership increasing, stability around government negative gearing, continued low interest rates, expectations that government will throw additional incentives such as scraping stamp duty/fhbg, unlocking super to buy a home, reducing land tax, pause developments/land release, and a surge in immigration next year. And lastly, in addition to all the props the government gives landlords, they could explore the concept of rent support, if they pitch it with the guise of supporting renters, it might just slip under the table that its just a ploy to give more tax payers dollars to property owners to continue to push up house prices.
The reasons against don’t seem to indicate a correction is likely any time soon, the past 30 years suggests any future outcomes to the property market will be driven by government policy. Government policy has only ever been used to drive prices up. My advice is to buy as many houses as you can, just keep buying, don’t ever have a negative thought that houses are over valued - second guessing is what locks you out, never have reason not to buy, just buy and be glad you bought. I fell into the trap on 3 occasions by thinking the market was overvalued and on those 3 occasions I was wrong, 0 from 3. On the 4th occasion I thought the same, but I learnt from my mistakes and I committed to buying, now I’m 1 from 4. Mind you on those first 3 occasions it’s was intimidating to buy as open homes had ppl rocking up in cars worth more than the value of the house.
I was a young man with a small pot of cash I’d saved, just trying to buy a home to live in. Trying to get in was hard, I had to compete with millionaires to buy a little crapper.
But times have now changed, and I now have some wealth behind me. My dream is to start buying my investment properties and force out young couples/families starting out. As now I have more money then they will ever have and I can just outbid them, and it will really make me feel good about myself. That’s the great Australian dream!
Expand
