MasseyFerguson ponders: "Is propertygoing up or down over next 3...

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.

Why the emphasis on land-based assets?