Bears V Bulls

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    No doubt that the RE market is a tad unpredictable at the moment, and there are numerous complexities, domestic and international, to consider. Most here know what they are, so I won't bother pointing them out. Nevertheless, predictions based on the way things were in the 70s or on the ramifications of the GFC and US property market, is fraught will false trails. There are just too many games in play and the world has moved on to a different dynamic. Even so, it is worthwhile remembering that the American RE market is a different animal entire, and RE is nothing like the world of tulips (see economics 101). At the moment we are seeing a healthy and overdue correction, and yes, many of the late entrants will suffer the consequences of equity loss. That said, while employment remains steady and our major trading partners continue to grow, I don't see cause to be unduly alarmed, save the late entrants. If Labor wins the Federal election, and is able to make known changes to negative gearing, it will be grandfathered, so few investors will have reason to sell. Conversely, first-time buyers will have the opportunity to enter the market at a discount rate (plus government incentives), both of which may serve to stabilize the market. In summary, it is impossible to predict anything with any accuracy, but I would caution those that believe every RE analyst report as fact. Instead, I am more inclined to study the realities as they stand an form my own conclusions.
 
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