the difference in opinion of the bears and the bulls is annual...

the difference in opinion of the bears and the bulls is annual capital growth.
historically property has averaged 7% or so per annum.
but it doesn't. no instead it spurs for a 3-5 year period, and is dormant for the balance. well since 2008 we haven't seen much growth at all. so what will spur the growth this time?
the great increases in 2000's were achieved when the wife (or husband) brought in the second income. all of a sudden, it was socially acceptable for both parents to work full time. therefore affordability went up in a big way.
My question is what will be the next reason to see property prices take off? wages have barely grown in the past decade, and unemployment is set to rise over the next few years.
whilst i don't see a big correction where every second home is being foreclosed (prudent lending will hopefully prevent this), you are dreaming if you think property overall will avg 8% this decade. we're already 4 years in with barely a breath.
historically great, but that my friend is history.
long term there will be growth and i know its more than just money. but if you're looking to build wealth, there are better ways to do it than with a 30 year mortgage and LVR of 95%. if you don't have kids, save your pennies and rent.
as far as investment goes, well residential is one of the worst performing over the last 6 years. i own an investment property (although will be selling shortly) which returns me less than 5% gross and after rates, taxes, insurance, mgt, maintenance etc i'm at about 2.5-3%. if the house's value had gone up 3-4% annually i guess i'd be about even over the last few years. but instead its been flat and just getting another year older.
and just one last thing, i work in property, and i love real estate. but at the moment and from a financial perspective, only buy a house you love because emotional return is pretty much all you'll get from bricks and mortar over the next 3 years.