why property is now riskier than shares, page-14

Hey all.. Barbight is right in offloading and if it wasnt for the tax Id have to pay Id sell another this financial year...

Good luck with getting your first home Makybe! Here are a few things to consider though...

1. Interst rates, being as low as they are today you would usually see property prices skyrocket.. not just holding their ground, and IR should increase...

2. FHOG will stop one of these days and that should see property prices stumble by taking the buyers off the market.

3. Unemployment.. keep an eye on it because, these people who jumped on the FHOG with all they had under the low interest rates now are looking for a new job with higher interest rates!? hmmm.. going to have to sell! and under what circumstances? I dont think it will be pleasant...

Saying all that keep in mind houses are below construction value and construction has to keep going to meet demand...

property prices are not going to jump nicely like they did a few years ago (broadly speaking) prob bounce along sideways for a while whist meanwhile (i never did like shares and always stuck to property) but now did you know that you can buy property shares for half of what the NTA is? like buying a 200k house for 100k! PLUS get great dividends? like retal returns of 20%!

check out AJA MOF for starters and keep an eye on TCQ ILF and AEU for a higher risk higher return.. huge upsides for your property deposit ;) would be truely amazing if any of them went bust...

Alos remember to rent where you want to live and buy where you can get some real capital growth... my picks

1. Dalby QLD
2. Geraldton WA
3. Carlton Vic for cheap units with great rentals and should outperform the market
4. Karratha should only go up but is already expensive

Take care and good luck all,

Kivi