Australian property investors who can ride out the current downturn are poised to reap at least 9% per annum return on their investments over the next five years according to Residex.
John Edwards, CEO, Residex said that while housing won't provide capital growth like we've seen in the past two decades, it's still offering a better return compared to shares.
"2008 has been a year that has proved to all that housing is a lower risk asset than any other," Edwards said. "Our models are generally predicting housing prices will just keep up with inflation or marginally do a little worse, however, in the current economic climate, this is a good outcome. I'd be surprised if shares achieved the same outcome over the same period, simply because earnings are going to be depressed and therefore dividends."
Source Your Mortgage Magazine: 19/12/2008
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