As an investor myself, having bought and sold many properties, my advice is you only invest in two areas at the present time, CSG mining, and cities close to transport. Also keep an eye on Chinese tourism but tread carefully as tourism real estate is very risky, whereby you need to get in and get out at the right time.

The other point is that QLD is about to boom, especially the capital and major cities as the flow of CSG royalties is about to kick in.

As for a bursting bubble, we've just gone through one and the only real problem I see moving forward is if they remove negative gearing as that will kill the market stone dead overnight. Won't happen though.

As for affordability, many wannabe home buyers can afford A house, they just can't afford THE house, and that's the problem. They are just too fussy.

remove negative gearing as that will kill the market stone dead overnight.
rehctub,
Yes & no, it'd knock the investors but the market would not suffer. On the contrary I believe housing would settle at more realistic levels. Ideally it should be a need based market not a greed or want based one.
Investment does cause artificially higher prices as it is not based on recovery of cost & reasonable profit but on opportunism. It is akin to blackmail.

Indy I am confident morals and investing do not mix, for most.
Hasbeen low income is not hard to define, some just live in government housing ,some find it hard even to pay rents.
I think those earning say $25 to $30 an hour are just below middle income.
Foxy thanks but history has a warning for us all.
The link was long but informative and well worth the read,and too understanding his past predictions and why he thinks as he does.
How many of us saw the GFC coming.
How many saw the housing prices and those who borrowed byond thier means,before it took place.

I have felt for sometime we must one day,confront over investing and over pricing faces a correction in our housing market.
We must consider interest rates what if they went up 2 percent in the next three years.
What if the rise was 4 percent?

Belly,
yes. Actually, it would probably help our economy but not so much the investors (sorry, buy lottery tickets) if interest rates were to be set just prior to the beginning of a new year & locked in for 12 months. I believe economic stability is achieveable rather than the system we have now. Wnat to make money in a country then be a citizen of that country & pay tax like everyone else. That way your managerial prowess will come to light rather than all the devious writing off at everyone else's expense. Need a house for your family then build or buy one, don't buy up hoses just because you can afford it by ripping off taxpayers by write offs thus denying young couples the opportunity of settling down. It's because of of those callous investors that we now have a society of mistrust & opportunistical greed merchants.

Dear Belly,

In Melbourne - Chinese investors are currently driving prices
up - and forcing young married couples out of the
market. You can go to any auction within the eastern suburbs
and see that if there's any Chinese bidding - you don't have a
prayer in ending up with the house or unit you're after.
That's the reality. Especially in the desirable suburbs.

Only a few months ago I offered an agent 125 thousand for a block of land which she advertised for 145 but I knew that the owner had put on 130. She wouldn't sell to me but recently sold it to a friend of mine for 105. The new owner said he's not doing anything with it except wait till the price goes up again. That's the sort of thing that's ruining it for all.