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Property bright spot in bleak forecast

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Your Investment Property | 27 Aug 2014, 03:13 PM Agree 0
Housing sector investment hits one of the few positive notes in a new forecast report on what the future holds for the Australian economy.
  • barbara | 28 Aug 2014, 11:16 AM Agree 0
    I believe the housing boom is created through sales to the Chinese. China is moving towards a depression, which will almost eradicate any overseas investment. I believe Australian property markets are in a bubble and have been for 30 years; there will be a dramatic correction in 2015, when Chinese buyers evaporate, which will reduce the value of property to its real level. Banks are cannibalistic; they survive on housing loans and are telling the RBA not to tell the public the truth. Those with huge housing loans will find they will lose their homes as Australian jobs evaporate and property values diminish. You would be wise to refrain from any bank loan for the next four years, investment or not.
  • Sam | 28 Aug 2014, 01:03 PM Agree 0
    Completely agree barbara, the next 5 years ahead will be tough, I dare say we're headed for a lost decade much like 90's japan marked by low growth and high unemployment. Mining is winding down to low levels of activity (its historical average) and theres no industry left to takes its place as an economic driver. The suggestion the house price growth will drive GDP is absurd, countries don't get rich from property speculation and unsustainably increasing debt.

    I think the best anyone can hope for is stagnant price growth after inflation is taken into account
  • Me | 28 Aug 2014, 01:12 PM Agree 0
    The Australian Housing Market is not one single market place. It is a mix of many markets in both capital cities and regional areas etc. Every market has its own particular factors that drive and affect the cyclical price fluctuation ie tourism, mining, education, government etc. This being fact, then it really does depend how the influencing factors are driving the market in which you either live or invest in. For that reason it is important to buy in multiple areas that are driven by multiple financial factors ie don't invest in a single industry town such as mining. To state that Chinese Investors have the capacity to alter the price of real estate in Australia as a whole, is either a very small and narrow view of the Australian Real Estate Market, or shows a complete lack of understanding of fundamental economics. There has been many times in Australia's history where certain areas have only grown during poor world economic times due to overseas investment. We saw this in the 1980's in certain parts of Country NSW when selling our best breeding rams to Saudi Arabia was big business. Most other places in NSW were suffering and this part of Australia was riding high on the sheeps' back! And I can make this list even longer. Everything is cyclical! This includes real estate, world economies and fashion. So mining has suffered a drop and China is not buying so much of our coal, iron et al. When the dollar drops tourism will take off again and another area in Australia will have its time in the economic spotlight. Work out where you are financially and how you fit into this cycle and go with the flow - or against it if that's your thing! But more importantly plan for the future. This is where you can have more influence on your life than if the RBA drops or lifts rates or the house next door to you is bought by someone from China!
  • Stylista | 03 Sep 2014, 07:04 PM Agree 0
    Let's not forget the fact that Australia has some very beautiful places to
    Live! Great weather and opportunity trumps cities like New York and Vancouver which also have expensive can get incredibly cold in those cities..most people would choose Sydney for its great weather abundance of job opportunities. Australian education is rated quote high also which would be a lot of incentive for people to move here. I don't know why "Chinese" get blamed for rising prices...blame Australia for being such a great country to live in. I don't think mining is the only thing holding this country together...have these people making these blanket statements actual travelled to see what the rest of the world is like??
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