Australia, in terms of its capital type cities has a history of small price falls and then going basically sideways, up down round and straite ahead for years. Regional centres are different becasue many regional areas (beach areas) are the playgorunds for thos who made it good, they have holidays homes etc. These are the places that take the hits when bad times come. Durubg the earlier part of the GFC many regional beach areas in Australia saw drops of easily 30% and are still seeing them.
Becasue there is so much movement to our capital cities, we just tend to have very low growth and as Susan pointed out in an earlier post. Real losses occur becasue growth is so low that taking into consideration inflation and the holding costs then we see losses.
All in all we are in for slow growth over the next 5 years, or in real terms losses allowing for inflation etc.
The interesting thing is that bloody big growth only lasts for 2-3 years max, the other 10 or more years before usually sees no to low growth and now that I am older and hopefully a little wiser I plan to take advantage of it, only problem is that we are about antoher 10 years away from super explosive growth like we saw in the early 2000's.
There will always be isolated areas that have some advantage that make gains for whatever reasoons but most people don't know or care how to make money from those areas.
Becasue there is so much movement to our capital cities, we just tend to have very low growth and as Susan pointed out in an earlier post. Real losses occur becasue growth is so low that taking into consideration inflation and the holding costs then we see losses.
All in all we are in for slow growth over the next 5 years, or in real terms losses allowing for inflation etc.
The interesting thing is that bloody big growth only lasts for 2-3 years max, the other 10 or more years before usually sees no to low growth and now that I am older and hopefully a little wiser I plan to take advantage of it, only problem is that we are about antoher 10 years away from super explosive growth like we saw in the early 2000's.
There will always be isolated areas that have some advantage that make gains for whatever reasoons but most people don't know or care how to make money from those areas.