I am like every other Australian - a bit obsessed with property. I am keen on knowing what other people think will happen to property prices over the next year / 2 years?
I think that they will come off (5-10%) or maybe crash within 2 years (15-20) if they don't come off next year. A couple of events are likely for me over the next 2 years
- better economy, higher inflation and thus higher interest rates,
- higher US rates, Australia protecting their currency by increasing rates,
- a credit event originating in China (because of a over stimulated economy), Japan (massive government debt) or maybe Australia (unlikely but our debt has been growing)
Does anyone else think that Australia encourages property investment too much? Things like SMSF regulation allowing investments in property, Tax incentives like negative gearing and capital gains, low interest rates at a full employment economy, interest groups promoting property (construction companies & realestate agents).
…ozzieblue
Apartments to fall, metro houses to steadily increase.