The latest expert has just warned of a down turn in the property market, the economist Chris Richardson of Deloitte Access Economics said, “Property was set to become the “worst investment” over coming decades.”
Mr Richardson has told the AFR, “A looming bust in apartment prices and the fact that official interest rates won’t stay low forever could lead to a shake-out.”
His comments are just following the Reserve Bank of Australia warning that came on Friday about the very possible oversupply of the inner city apartments.
These all things have just added up to the difficult time, which is ahead but Nigel Stapledon, who is of the UNSW Business School said, “he didn’t think the scariest of scenarios would happen”
Dr Stapledon also said, “it was possible real estate could become the “worst investment” but a rise in interest rates would also impact other investments including the bond market.”
“The fact that interest rates are low means that returns (in general) are going to be low,” he added.
Even though if the interest rates didn’t go up, Dr Stapledon, “said it was unlikely people would see huge gains like before.”
“More recently we’ve experienced people doing very well out of housing but that’s in part because of low interest rates driving asset prices up,” he said. “That’s a one-off and that’s not going to be repeated.” He added further.
So, this startling news is a warm the ears of the investors that, it’s not the perfect time to go for investment.