Good thread but in trying to predict property prices in the future is guilty of being very narrow.
When talking about WEALTH CREATION over a long period of time other things have to be taken into consideration.
The human,cultural and financial field of play so to speak.
What other asset of equal $ value can a young person take financial credit against. What other asset of equal $ value involves less risk over time. (Margin calls and the like.) What other asset instills a better form of budgetary constraint over time. (A form of enforced saving) What other asset can you gear against to the limit of property either partially or fully paid off. What other asset eliminates the neccesity of shelter. (Talking 1st home buyers here, the old rent agument.)
These factors and many more need to be brought into the argument of property worth along with future price I would suggest.
In saying that I have always tried to be countercyclic in asset acumulation so will not be running to the bank tomorrow but believe interest rates are the key. Cannot see interest rates going up for some time. Therefore am doing my best 'Rabbit in a headlight' impersonation down here at Dee Why. ie. I think property is overheated but for the life of me cannot put my finger on what will correct the market.
