Hi, this is my second post ……whoo hoo!
Whats everyones thoughts on the overall australian residential market in the next 5 yrs.
Some experts predict an increase due to supply and demand criteria,
Some experts predict that we could possibly have a recession if interest rates slowly climb and because we are very high in debt , we could see a correction in prices and that its not sustainable at these levels.
Its a hard call , it would be good to hear the thoughts and predictions of this forum.
I think its the hot subject on everyones minds at the moment!
KC [fear]
In a word – affordability.
At the moment most areas are at very low affordability rates. Another interest rate rise or two will slow things down even more.
I have heard that the higher end of the market is flying along nicely, so obviously the more well off aren’t as affected by all the property value increases or interest rates.
Mr and Mrs average still keep spending on the never never, which makes properties even harder to obtain.
The Fed has their hands tied to a degree – drop the rates and the average punter buys a few more doodads, which forces up inflation, or the housing market takes off a bit again due to the lower rates, which forces up rates again and then we’re back to no affordability again.
Cheaper areas will have to go up, the top end keeps seems unaffected, so that leaves everything in the middle probably doing nothing for a while.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
thanks marc, good input, any more thoughts from other posters?
Look at areas with strong employment, good infrastructure, follow the water or views, fix rates for 5yrs. Buy in lower price bracket – around $200k. People have to live somewhere.
That’s it, people have to live somewhere.
And if house prices in their area are unaffordable, where do they go? They go out… further from the CBD, further from the larger suburbs, and then the infrastructure is built to support all these people moving further out… I guess that’s how cities grow.
I’m not an expert, so I won’t try and predict anything!
People have got to stop spending on so much crap…we don’t need plasma teles..or bananas…
I’m just worried whats going to happen when oil eventually runs out…
Originally posted by picklesam:People have got to stop spending on so much crap…we don’t need plasma teles..or bananas…
I’m just worried whats going to happen when oil eventually runs out…
Sorry; a bit off post, but… [offtopic] (always wanted to do that).
I think you’ll find that the car industry is already about 20 years ahead of us on that one. They won’t let you access the non-oil cars until the oil is depleted, but you can bet that they’ve been working on, and have already developed the next alternative fuel car.
I saw a test car on tv the other day that actually runs on AIR.
It’s a lot like the electronics industry. They already have the next upgrade on your plasma, dvd or whatever, but they need to recoup costs, profits and R & D on the current models, so they won’t release the new stuff until that’s achieved.
That’s why I always wait 2 years for the current model to expire and then buy it at about half price. Still works the same, but maybe doesn’t have quite as many bells and whistles as the new model. A bit like buying a car really.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
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