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- Are house prices going to keep rising?
Are house prices going to keep rising?
- By Pamela Yardney
- Published 29/05/2009
- Home Buyer's Guide
Pamela Yardney
is director of Metropole Properties and an accomplished property investor and developer. Pam was the founder of Metropole Property Management and has authored many articles on maximizing property investment returns and is co-author of the top selling book "All You Need to Know About Buying & Selling Your Home" www.metropole.com.au
View all articles by Pamela YardneyThe real story...
There are lots of property “experts” out there who keep insisting that a real estate crash is coming and scaring people with dire warnings not to buy and not to take on home loan debt.
Why do we believe this?
It all falls back to supply and demand. Australia’s population continues to grow with a recent baby boom and increased immigration (close to 200,000 new people coming in from overseas each year.) And the way we are living has changed. Now there are more single and two people households, meaning we need more dwellings for the same number of people.
Yet at the same time there’s a lack of supply of new housing stock, as we are not building enough to meet this extra demand.
Added to this is the increasing cost of developing new housing which pulls up the value of established properties.
This strong demand and restricted supply will ensure that property values will continue to increase in the long term.
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Michael wants you to know; In the 34 years I’ve been investing in property, people have always said, ‘Don’t buy property – it’s too expensive.’ But I’ve lived through a number of events that scared a lot of people into leaving the property market when I stuck to my guns and kept buying, and I have come out well on top. Some of the things I’ve seen include; · three petrol crises and 2 major droughts, · four changes of government, one prime minister drowning and another sacked by the governor general · we went to war in Vietnam in the seventies, then again in Iraq this decade · a terrible stock market crash in 1987, and some smaller stock crashes before and after that · the highest unemployment rate in our history and periods of nearly full employment · a world economic slow down · September 11. Despite all of this doom and gloom, house prices have continued to double every 7 to 10 years and my properties have increased in value substantially. I’ve been able to use the increasing equity in my investment portfolio to buy myself bigger and better houses and more investments. |
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