Property – prices keep rising and the pundits toss like a small boat in a storm “Will they rise?” and “will they fall?”
They are rising because of negative interest rates around the World. Rising because shares are looking pretty dodgy and gold is a bit of an odd concept to most people in suburbia. Where to buy, where to store, where to sell? etc. Falls into the too hard basket.
So that leaves things they know – Property. So, they buy property ‘For the investment and the rent will pay the mortgage’. Until the oldies all go into retirements and sell their investments over the next 20 years. With a shortage of cashed up buyers and more sellers than buyers……………yes, they will drop savagely.
Today’s barista can’t and won’t buy your mansion and the ever downward pressure on wages and job security equals a demand for cheap houses which don’t exist.
Wars and refugees everywhere are displacing people. Perhaps the disgruntled French will come to Australia to buy? err, no. They can’t sell (Who wants to live near ‘The Jungle’?) and their prices are lower anyway. Chinese? – most smart money has left China already and the Government are imposing capital controls, so that’s another no.
With the highest prices on the planet – who could or would buy?
The demand from the younger buyers is for affordable housing. Oldies want to downsize and pay for that hip operation. With miserly employers the norm, affordability just isn’t there.
Hmmmmmmm. We’ll pull out the crystal ball shortly.