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.
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.
The Reserve Bank continues to hold the official cash rate at 1.5%. What’s going on? Is this as good as it gets for the Aussie economy?
The smart money flow index has just plunged. There’s a risk that you’re going to see another leg down in US stocks very shortly. What will happen next?
Without a rising and stable real estate market, the economy will suffer. Both federal and state governments benefit from higher property prices. They can generate more fees and taxes from higher land prices, allowing more money to flow through to governments.
Thought about buying a house recently? Or even selling? If you’ve been looking into the real estate market, or simply watching the news over the past decade, you’ll have noticed that housing prices have soared. It also would have been quite difficult for you to miss the housing crisis currently spreading throughout the country.
For quite some time now we’ve been told by economists and experts that the housing market will fall. When that’s supposed to happen? Nobody can say for sure. However, you have to consider that it may not happen at all.
The divide between the generations is real. And although starting off has never been easy — and it’s not meant to be easy — it’s still fair to say no generation has had to start off at such a disadvantage when it comes to buying a roof over your head.
Australians, individually and collectively, have bet everything on housing. And every year, we double down on that bet. There’s no certainty that 2018 will be the year our housing gamble goes bust. But it would be madness to be certain that it can’t. Aussie property investors in Australia could be in for a rough year.