I am glad I didn't listen to Steve Keen: Tyron Hyde
GUEST OBSERVATION
Do you remember when Professor Steven Keen, (the economist, author and renowned pessimist when it comes to property), was selling his house because of he thought the property market was overpriced?
I do. The year was 2008.
I remember seeing him on TV (A Current Affair or Today Tonight) doing a walk-through of his apartment and explaining to the reporter how overpriced the market is and it’s time to sell.
Fast forward to today and this morning I read that in 2014 property prices are up 14% alone.
Here’s a chart up to 2013 – so add a lot more and to the end and you get the picture.
Source: Housing NSW, Arek Drozda
But, at the time, Steven Keen certainly made me think. He made me ponder putting some property onto the market.
Why? Because I thought and still feel that relative to wages property seems expensive. This is probably based on my childhood, where my father could support five kids and a wife on the one wage and still have a house in Concord NSW (back then I was a Westie - now I'd be a latte sipping urbanite).
But times have changed.
Now, I don’t know what the future holds but my lessons or takeaways from this experience are:
- Don’t get your facts from ACA or Today Tonight.
- I'm glad I didn't listen to you Mr Steven Keen
- Don’t sell property unless you really have to (the costs of getting into and out of the property market are really high).
- Australia has so many varying factors that have helped keep our property market strong
- There are many different markets within Australia – so it’s too simple to say the Australian property market will go this way or that.
- When i can buy money at 5% or below fixed for five years, .hard to see the market heading south anywhere in a hurry.
Did you sell? Where do you think the market is headed now?
Tyron Hyde is director of Washington Brown Quantity Surveyors.
His book CLAIM IT! helps property investors maximise their tax benefits through smart deprecation.
