When will this happen ? Soon I hope, but there's that's not clear. There has to be a crash.The banks are delaying a downturn by keeping interest rates low, to keep everything going. If there is a crash it could be sudden and dramatic, like an unexpected natural disaster.
Everyone could be so spooked, investors could flee. I think the next crash could not just be about
interest rates going up, but a reality check. A crash would create new opportunities for smart cashed people to enter the market to snap up bank repossession or mortgagee sales. I would rather buy at low price with higher interest rates.
Everyone has just kept on driving the prices up, it's hysterical. The boom has seen many older home owners happily selling their homes for retirement and incredible prices, but the younger buyers can't get in. So I guess just hope it's your grandparents selling, so you'll end up with an inheritance.
Everyone buying has been relying or assuming the prices are just going to keep on going up and up, but the actual rental returns are very low. So if interest rates go up, there will be many forced sales.
It's an unrealistic market, it can't go on for much longer. The greatest decider will be if all those
Chinese buyers get spooked. I think that will happen.
A crash could also happen if the negative gearing tax ride off laws are changed for investors.
I don't think the government wants to do that cause it may be seen as inducing a crash, but if things keep on going the way they are, there will be a crash anyway. The longer the delay for a property bubble- the worse it will be when it does happen. It's like a balloon, it just keeps getting bigger and bigger, the bigger it gets the longer the wait, the bigger the burst. It's nature.
Don't buy property now, wait for the crash.