Waldo, property prices may go down in the future, sure, no one can predict what will happen. But they have been going up on average about 6-7% per year for a very very long time. Given you have to make a call one way or the other, I think it is better to buy rather than wait in the sidelines and hope that property crashes. You might be waiting forever mate.
Given the tax advantages, the leverage available, inflation whittling away the value of your debt, and directors law - I still think property generally is a fine investment.
I used to think the same way as you. My dad has tried to convince me the merits of it since I was young. 12 years later I now realise he was right and it my stubbornness has cost me a lot of money in opportunity cost. In the meantime, my parents home has increased at least 2m. After they first bought it in 87 prices dropped 25% or so he tells me - but 30 years later it didn't matter at all.
I just bought my first home for 550k - I overpaid by 20-30k btw. If I rented it out, and including the tax advantages and all maintenance costs, it will cost me 6000 per year to hold it. But at the end of 30 years I will own it. How much is the npv on 6k pa over 30 years, I don't know but can assure you it is a lot less than 550k. Even if prices are exactly the same now as they are in 30 years I will have done just fine out of the investment. This also assumes rents do not increase over that time.
Sure if I am forced to sell, or if interest rates rise a lot, or if rents fall, then it might turn out to be a poor investment - it's not risk free. But central banks and govts around the world will ensure we continue to live in an inflationary environment so I think the risks of these things happening are low. You will counter no doubt that inflation will cause interest rates to rise, yes, but it will also cause rents and asset prices to rise.
Up to you what you want to do, but you sound quite young and I hope you can learn from my mistakes.
