Comments on: Australian Investment: Shares or Property?

By: Retire Guy

Retire Guy — Fri, 04 Sep 2009 02:26:04 +0000

Kris, you neglect to mention supply and demand, as well as the cultural aspect.
As long as there is a lack of rental properties available, rents will continue to rise. If rents rise, yields rise, meaning an increase in values. We will continue to see price increases while housing is constrained in our cap cities. The only way this will slow is through interest rate increases.
Australians have a cultural mentality where it is a "right" to own a home, you know, the great Aussie dream! This is at odds with the US and Europe, where most people rent vs own. Unfortunately Aussies will need to accept renting or be happy with owning a home on the far outskirts of our cities. It has long made better financial sense to rent than own.

My fear is that we will have our own subprime crisis when interest rates go up and all of those buyers who accessed the first home owners grant realise how overstretched they are financially.

By: rick e

rick e — Fri, 03 Apr 2009 02:07:01 +0000

As humans even as kids our tension span is short or we get bored easily
It looks like the momentum and believing everything is all right at the moment Stocks are going up
Australia is a small identity with great resources however whatever money they borrow will have to pay back they have no choice.
So if Australia lives above its means it is only a matter of time will run out and have to pay up
The difference with America they don’t have to pay back all the money they borrow because they won two world wars and have an army base in every other country.

By: Low Retail Sales Numbers Could be Disastrous in Long Term

Low Retail Sales Numbers Could be Disastrous in Long Term — Thu, 02 Apr 2009 03:06:49 +0000

[...] all going to end. We don’t think it will be a happy ending. I wrote an essay for the Daily Reckoning website on property yesterday. You can read it by clicking [...]

By: Steve O'Brien

Steve O'Brien — Thu, 02 Apr 2009 02:24:34 +0000

It's a nonsense to say that comparing shares vs property is a nonsense! Investors make a choice of one vs the other (vs other options) every day. Yes they are different but comparisons are valid.

eg - On one hand you just buy shares on line or through your friendly broker. On the other hand you have to deal with a fast talking shiny-suited real estate agent who barely made it through year 10. Same again (only worse) when you want to sell.