the economist and the housing bubble, page-33

Hi Techno,

The writing has been on the wall for some time.
We sold our house a few years ago. Still did well out of it. However, another year would have been better.

Since then we have been renting and will continue to do so until we believe the time is right. Might take another 12 mths - 2 yrs to fully bring the housing market to its knees. However, time is on my side.

Funny, we have plenty of friends who have been playing the property markets over the last few years.
They have suddenly become property experts simply because they have made money.

As well, they don't understand why I invest in the stock market rather than property. I don't profess to be a property expert. Nor do I want to.

Talk to them about the state of the economy or global markets and they are left at the starting gates.

Although they have invested in property they do not really understand their investment and the market forces that effect property supply and demand. They just think that it will continue to grow over time.

I like the idea of paying low rent in comparison to having to own it and pay rates and all the other associated costs. Not forgetting the time factor to maintain it.

The owner has to do all the work plus meet his financial committments.

It frees up my equity to invest in what I know best and gives me more time to do other things I regard as more important.

Each to his own, I guess.

Cheers

markco2