Australian Money Forum

[wulfgar]

It's amazing to see the lies being printed in the media, but I guess we know who they work for.
Claims that a another house price boom is on the way in the middle of a world recession is a ridiculous concept.
I see stuff in the Newspapers but down the local RE window prices are falling.
When property investors realize that they are going nowhere, then we will see exactly what occurred overseas. A panic sell amongst investors.
Those who keep their purses shut until next year, will be looking at saving themselves a third of the current purchase price.

[Tricia]

I don't believe there will be a housing crash. What I think will happen is that vendors will hang on to their houses and not sell unless they really have to, creating a supply crisis. The competition for thoses houses coming on to the market will rise and the prices will remain strong. Because of the interest rate rises many first home buyers will be cautious about entering the market and investors will be out there buying up homes for the rental market.

I also feel that much of the property market these days is media driven. If the emdia says it's the time to buy everyone rushes out to buy. If the media says stop they stop. The buyers and the vendors seem to suffer from a 'sheep' mentality!

I've been lucky enought to bag a few bargains in the growth corridor around Glen Waverely, Vermont, Forest Hill and Nunawading - I feel Nunawading hasn't reached it's full potential becasue the impact of the railway going underground and the great freeway access has been undervalued. I still see the opportunity for growth in these areas. I worry about the young people buying land and building in the 'outer limits' these places will struggle to have any capital growth and may see a price fall.