You might have recently seen a few headlines about the predictions on property prices into the future and there will be more on the way, for the simple reason that the writer wants to get your attention with the sole purpose of attention seeking.
Why? With so many varying opinions someone will get it right and then bask on that for a while.
The sad reality is that we saw headlines from the ANZ Bank and others in 2020 predicting a massive drop and as you well know what we experienced was a massive lift in prices.
So, what is my take on all of this today?
After 48 years in property and real estate I am not in the habit of predicting anything other that what I have experienced in my time and that is very simple.
Property prices in Victoria double every seven to ten years. It is never about the short-term, because if it is you are speculating not investing.
My first sale in 1973 was a weatherboard house in Belgrave South on a quarter acre block with a little stream running out the front for $12,500.
Today that house will be worth around $800,000 to $900,000, so do the maths.
How many times has it doubled in 49 years? Should be around 6 times, which is $800,000.
Property is a long-term investment and the ‘Great Australian Dream’ is to buy a house, take a mortgage and pay it off in 25-30 years. Correct?
Good idea, but wrong strategy!
If you have had your house for a few years, I can show you a way to pay it off in ten years or possibly less. No catches, nothing illegal.
Sound too good to be true?
All you have to do is email me or chat with me and I will show you the way.
BERTRAM DANIEL FREI
Licensed Real Estate Agent