[zaph]

Quote

FOR the property true believers it is always a good time to buy. Booming market: get in now before it is too late. Stagnant market: great opportunity to buy at a discount. Falling market: what a bargain!

Housing, it would seem, is not a place to live nor even an investment. No, it's a religion. Facts are curved, fitted, ignored, dismissed. Faith reigns supreme. All you have to do is believe and house prices will keep on rising.

Like religion, the protagonists are vociferous and dogmatic. Just check out the online comments under any article on housing on a major newspaper website and you'll see how fervently the views are held.

http://www.courierma...f-1226244864491

[Crest]

Wow. All I can say is that it is nice to read some balanced commentary about the housing market in the mainstream media.

Much better than the real estate propaganda that we've been getting over the last decade.

Well done Stuart Barnett and The Courier Mail.

[tor]

Quote

In surveying 21 market economists, Joye found the consensus was that house prices would "likely be 55 per cent higher in 10 years".

So the positive outlook is that prices will run at about inflation, maybe 1 or 2% better?

Which is definitely an argument for buying. Sometime in the next ten years and paying cash.

[booboo]

tor, on 15 January 2012 - 09:13 PM, said:

So the positive outlook is that prices will run at about inflation, maybe 1 or 2% better?

Which is definitely an argument for buying. Sometime in the next ten years and paying cash.

According to my handy calculator, that's 4.48% PA compounding, which is maybe about 1.5% to 2% over inflation. Not great considering property's historical run, and considering Joye's bullish bias, not great for what may likely be a best case scenario. It's definitely a big step down from "doubling every seven to ten years".

Article was a good read - loved the first paragraph, it's funny 'cause it's true.