re: The recession hits home

RaiulBaztepo — Sun, 29 Mar 2009 07:10:05 GMT

Hello!

Very Interesting post! Thank you for such interesting resource!

PS: Sorry for my bad english, I'v just started to learn this language ;)

See you!

Your, Raiul Baztepo

re: The recession hits home

Randal from Perth, Australia — Sat, 07 Mar 2009 23:27:50 GMT

All housing investments should be taken into a longer term context. Looking at housing markets in a fiscal view will often lead to sensational scares like the graph above. However, experts know that housing prices in stable economic countries are cyclic, and usually yield long term results.

For example - if you look at the chart shown in the following link (which shows median housing price in Perth, Western Australia) - it shows that housing prices have fallen since 2007 - and are likely to fall some more. However, if you look at the prices compared to 2003 figures, which is only 5 years, prices have increased 100% and more.

reiwa.com/.../res-salesgraph-display.cfm

Using the market in Perth, above, you would be on a very sound investment if you invested 4 years or more. Without looking at each country's specifics, I wouldn't be surprised if these trends were similar.

Back to the context of the chart in this article - I would only be "scared" if I was a recent investor - within the last 2 years. Then, if you put yourself into a patient state, you may be surprised to see them rise again in the future...