Australian house prices are crazy. They've been crazy for 20+years. They keep going up. There is a guy at work who told me it was going to crash by the end of this year. Sure enough house prices just keep going up.
Predicting the future is basically impossible.
I expect in the future stocks will crash and they will go to the moon. I have no idea when each event will occur.
I totally agree that Australian house prices are crazy and could never have imagined Sydney prices climbing another 10% last year.
I have no idea what 2017 and 2018 will bring, but personally I will be seeking to reduce my leveraged position on australian property and certainly won't be exposing myself further in this market.
I have benefited greatly from the booming prices in Sydney over the past 6 years as I probably took on too much debt in 2010, a roll of the dice that will pay handsomely if I sell up in this market. Currently it remains a paper gain.
I do feel that the growth to my net worth in the mid term will now have to come from other sectors outside Australian residential property. In 2016 I have been investing what I can in ASX200, emerging markets and All World index.
Like Australian property, I am also a little concerned about US investments as the USD is very strong at the moment v the AUD and Euro, and US stocks have seemingly high valuations.
It's not the easiest time to be an investor.... or maybe it is.... we will only know 10 years from now I guess.