Quote:
Originally Posted by Kokatha man
But talking of whether properties will continue to rise in price/value or not - an interesting report doing the airwaves at the moment is the expected massive rises in rental prices: how does this feed into the equations?
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A lot of the information on RE comes into the mainstream media directly from the REIA. It is an organization funded by real estate agents is it not? run by the real estate industry. The real estate agents wants to sell houses, if they don't, they starve or go back to driving cabs and working in factories. At current rents, current prices and current interest rates it makes no sense to invest in residential property. But if rents are going to double? Well now, that is hope for the future. And if I really really hock myself, eat catfood, walk to work and cut off my home phone, then I can get on the property ladder before it's too late! Before home prices double again to an average of a million dollars in ten years time.
http://patrick.net/housing/crash.html