Real Estate Prices Are Falling At Rate!

by Virginia Graham on February 4, 2012

I received an email today (from a stockbroker) talking about how now is a wonderful time to buy Aussie shares as the Australian property market is falling. The article then goes on to make it clear that property costs in Melbourne are falling- this isn't even the city where the e-mail has gone out to, as the costs roughly in Sydney have remained stable and Melbourne property prices have fallen after they went up in a unprecedented rise.

In opposition to the Australian share market which has fallen and fallen over the past few months, and is still falling -maybe it's a good time to buy shares, but most individuals like to see a market bottom before they buy back in. Australian property on the other hand still has the same underlying factors influencing its stability- high birth rates, high immigration and a comparatively stable economy- with unemployment shifting up lately the only possible cause for concern.

I like shares and I did used to be a stockbroker but the only Australian shares right now that I might even consider would be mining shares, and I might be looking awfully strongly into the growth of minerals and the signals of the spot prices for the under lying metals. Then I might probably wait for them to bottom and then buy back in. This panicked purchasing shares now is a terrible reason to buy shares or property. Research, system and plain old fashioned hard work must be the basis for investment not blindly following panicked tips. I have found this technique successful for clients. What you do is down to you and depends on your circumstances.

Another contemporary trend has been toward folks purchasing property in their super funds using smsf loans.

* This isn't investment advice this piece of writing is academic in nature only.

Virginia Graham is an Australian finance expert and also manages Central Coast Mortgage Broker

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