Do you remember when Professor Steve Keen (the Economist, Author and renowned negative nancy when it comes to property), was selling his house because of he thought the property market was overpriced?
I do. The year was 2008.
I remember seeing him on TV (ACA or Today Tonight) doing a walk-through of his apartment and explaining to the reporter how overpriced the market is and it’s time to sell.
Fast forward to today and this morning I read that in 2014 property prices are up 14% alone.
Here’s a chart up to 2013 – so add a lot more and to the end and you get the picture…
BUT at the time – Steve Keen certainly made me think… He made me ponder putting some property onto the market.
Why? Because I thought and still feel that relative to wages property seems expensive… And this is probably based on my childhood… Where my father could support 5 kids and a wife on the one wage… And still have a house in Concord, NSW (back then I was a Westie – now I’d be a latte sipping urbanite).
But times have changed.
Now, I don’t know what the future holds but my lessons or takeaways from this experience are:
- Don’t get your facts from ACA or Today Tonight!
- I’m glad I didn’t listen to you Mr Steven Keen
- Don’t sell property unless you really have to (the costs of getting into and out of the property market are really high)
- Australia has so many varying factors that have helped keep our property market strong
- There are many different markets within Australia – so it’s too simple to say the Australian Property market will go this way or that…
- When I can buy money at 5% or below fixed for 5 years…. Hard to see the market heading south anywhere in a hurry
Did you sell? Where do you think the market is headed now?
12 Comments. Leave new
Firstly on ACA and Today tonight you are 100% right.
On the subject I have a moderate 15 years in Real Estate in Regional areas and have of course watched the Sydney market. The return on investment varies we really have not had a time of 10 years or more where property has gone down in Capital cities in the last 50 years. Regional areas have a totally different outcome that solely rely on work that may come and go and there can be some quick highs and long lasting lows. Unless you plan to live there a while and you may still lose out buying in a regional area is a lucky dip.
Australian RE is a massive bubble (well guarded by parasites like Tyron Hyde)
Do the country a favour and shoot yourself Tyron!
Well that escalated quickly!
Don’t know if the exclamation mark after your advice on shooting myself was totally necessary?
Regards
Tyron Hyde
I’m sorry, you’re right, no point getting worked up.
Do the country a favour and shoot yourself Tyron.
Rachael,
The fact is that whether Tyron shoots himself or not, the property market will never go your way, so my suggestion is to relax and enjoy your tenancy, it may last for long long time!!!
Its already going my way, I live in Perth
Then, my dear Rachael, I don’t understand your bile. You should praise God that at least you have a property in Perth… For how things are going, who hasn’t jumped onto the bandwagon yet, or who has sold his/her property because of their expectation of housing collapse has lost, perhaps forever. So just be happy and keep your bile under control.
Perhaps, dear zonco, you should attempt to keep your dribble under control. Your sentence doesn’t make sense. With better english skills you might read enough to learn that God does not exist. Then again, I guess if you’ve bought into this property bubble, you’d need a little jesus.
Perhaps, dear Rachael, you should attempt to keep your third chin out of frame long enough that you might allow a sane sentence to get through. With better English skills you might learn enough to learn that only by a god existing does a moron like yourself scratch enough pennies together to be able to afford a property.
Then again, if silly billy got voted in, you’d be able to pick up a property with your centrelink cheque.
Good luck with that.
Xoxoxox
One year later and thats the best trash talk you could muster?
Praise be.
just wait………
I’ve been waiting since 2008 and I’m still waiting! Even he admits he was wrrrrrong. Said like Fonzi!