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Where are we in real estate growth pattern?

Discussion in 'Investing Strategies' started by ilori, 14th Oct, 2008.

  1. ilori

    ilori Well-Known Member

    Joined:
    27th May, 2007
    Posts:
    75
    Location:
    Mt Macedon, Vic
    I read in one of Peter Spann's books that real estate grows in a pattern... not linear, but in steps... example, over a five year period it might grow something like:

    * two years flat (eg. 2% growth)
    * one year up (eg. 7% growth)
    * two years jump (eg. 16 to 20% growth)

    Does anyone know if this is true and where Victoria or Melbourne might be up to in the sequence?

    Idea is to see if can tie it in with sharemarket cycle so can take gains from market recovery and roll into real estate at right time to get max benefit.

    Any info on this much appreciated.

    Regards,
    Ilori
     
  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    Ilori,

    It's hard to tell.

    Property in general is expensive so I expect little growth in line wih inflation.
    However, there is severe shortage of property so I think your option 2 is possible.

    Last year though we had a surprise surge so you never know with these things.

    We may have a 2 year surge followed by a small correction which could takes us down to your option 2.

    Cheers