MasseyFerguson ponders: "Is property going up or down over next 3 years"
There are two classes of Aussie property that my wife and have invested in since we were were married in 1983. Our Canberra home that has increased in value (partly by upgrading to a new home) and putting an annex on to host five overseas uni students (and partly by the degradation in the buying power of the Dollar) from $24,000 in 1983 to $650,000 now. We own it in fee simple: no debt.
Population, prices and rents will continue to rise (with dips along the way) and the buying power of Australia's Dollar will continue to drop. Bottom Line: We buy for the long-term. We don't speculate.
We have also bought rental properties. But not in snobby Canberra as prices have a Pose Value premium, We buy over the ACT-NSW border in what snobs call "Struggle Town" or Queanbeyan. Yields are better and so is long-term cap gain.
But as we can't sell a bedroom (if times are hard or we need cash) we are also into liquid and listed Aussie property and infrastructure trusts, for yield.
