As a follow up request to an article I wrote last week:
https://steemit.com/australia/@contemplate/australia-s-secondary-bubble-private-education-costs
I was asked about my views on the Australian Housing bubble. There are many articles out there on the bubble and by people more qualified than me. I will share my views with the hope of generating discussion.
My view is that we all need a place to live and that housing or real estate should not be viewed as an investment, however I am sure that many have profited from real estate and would surely disagree. If there is a correction, I view the best approach is for most owners who have been invested for many years to ride it out and for current potential buyers to research and do their own homework before buying.
I have 2 daughters who at current prices will not be able to afford real estate, this is a problem. As people die, move into aged care homes, scale down, move back to rural areas, there will be a increase of sellers in the years ahead but who will be the buyers? Immigration may help but balance is needed.
There is a stigma associated with renting, as though there is a class system of those who own and rent. Europe does not have this view. Perhaps this stigma needs to change.
In Australia, real estate has done very well in recent years, so why not get in? There is a fear of missing out and many feel that there are not many opportunities to invest in other areas such as the ASX etc. Perhaps there needs to be more of a focus on innovation and fostering valuable, Australian made and led companies.
We need sound monetary policies, low interest rates are deterring savers from saving and encouraging some to invest in real estate who cannot afford it and will be challenged if there is an increase of interest rates.
Regardless, if there is a correction, we will all be affected and we will need to support each other.
