So we're back to this discussion, it seems to flare up every...

So we're back to this discussion, it seems to flare up every month or so.

The property cycle has been going for longer than any of us have been alive and it will continue way beyond all of our deaths. It's always funny to hear people claiming that somehow things are different now.

The laws of supply and demand determine the price of just about anything (short term some things can be manipulated but not long term). The same is true of land.

The facts are that:

(a) Land cannot be created, it is a finite resource.
(b) Home formation rates are increasing due to many reasons therefore demand is increasing and will contnue to increase.

If you stay away from units and stick to houses with their own land footprint, stay in median level suburbs and stick to medain type house in those suburbs you are "safe as houses."

For properties like the ones described above there will not be a drop but there will be a flattening for a while. This is in keeping with the way the property cycle has worked for hundreds of generations.

I don't know the ages of people on this forum but for those of you with another 15-20 years of working life ahead of you there are few means of investment to match the certainty and leveraging capability of property investment. Buy the right type of property and hold, don't sell, ever. You can only increase your wealth.

For those who disagree, that's fine, don't do it. Keep waiting for the massive 50% correction.