Monday, October 30, 2006
House price gains vs. Stock market
In this VI inspired report we are shown just how wild house price rises have been relative to share price rises over the last ten years. Aren't they just saying that HPs are expensive and shares are relatively cheap now and will probably give better returns than property? Quote: "However, prices increases seen in the past decade are unlikely to be repeated in coming years because of affordability constraints. House price growth closer to earnings growth seems a more likely trend." So shouldn't investors should look elsewhere?