I would not treat your house like the share-market. From my angle, I would think it would be best to hang onto your house as it provides you with stability. Once unshackled from the burden of debt, I believe it would be a good idea to start saving like crazy and live a simple and humble life - avoid the traps of burning your money by travelling the world (unless you go to some of the Asian countries).
There's a school of thought that believes housing will track sideways for some time whilst the new generation of buyers come to terms with the extremely high house prices. I'm in that camp. Only another shock, a la GFC, could cause a housing collapse here - not impossible, but our leaders and banks are doing everything they can to keep the prices in suspension.
At the same time it looks like a given that we will never see below average interest rates for a long, long time. Coupled with the fact that our banks are possibly not as strong as we had all thought, and 'may' feel the wrath of a Moody's downgrade which will cause a spike in the funding costs for our banks.
We've seen the commodity spikes, we've seen the housing spikes, and both of them we're a result of excessively cheap interest rates and loose monetary policies. Our current high levels of debt guarantees one thing - money is actually a lot scarcer than what we believe. I believe it will be the next big boom, where individuals will start chasing cash for the best returns. As long as houses aren't sold to cash in (sorry) on the boom then housing would have nothing to fear.
- Forums
- Property
- our bubble's bigger than their bubble
our bubble's bigger than their bubble, page-10
-
- There are more pages in this discussion • 20 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
HAR
HARANGA RESOURCES LIMITED.
Peter Batten, MD
Peter Batten
MD
Previous Video
Next Video
SPONSORED BY The Market Online