Of course, you should be buy low and sell high. And there are a lot of low prices at the moment. But now might not be the time to buy anything and everything. So what should you buy?
The housing market has been on a steady incline for over a decade. There’s no disputing that. And even though the last 10 months has seen a small decline in house prices, they still remain high.
For over a decade, Australia’s housing prices were on the up. They soared higher, in absolute terms and in comparison to incomes, than Aussie real estate markets had ever been.
Growth is up. Spending is up. Savings are down. In fact, savings as a ratio of income is just 1%. Here’s some high-level maths for you; a person on $100,000 a year is saving just $1,000.
So, if you’re an Australian keen to buy your first property, maybe now is the time to sit back and watch the market correct itself. But remember, a housing crash wouldn’t just hurt investors and homeowners.
This is a controversial view as it has the potential to undermine the stability of our whole nation’s economy. Our banking sector is built on a foundation of housing mortgages.
There’s the well-known Sir Andrew Lloyd Webber, composer of musicals such as Cats, Jesus Christ Superstar, and Evita. And there’s the less well-known Cameron Mackintosh.
Yesterday I mentioned that some of last year’s dog stocks could become winners. However, I won't be buying yet. A downtrend is a low probability play, no matter how appealing the value.
Ingenia Group Unit’s [ASX:INA] share price has increased by nearly 18% over the past week. The senior living group’s shares are currently trading at $3.10, their highest share value since mid-2014.