The last time I checked in at the back end of 2014 there were 9,448,300 dwellings in Australia, a figure that will be approaching 9.5 million or so today.
Are some share indices and stocks trading at high valuations? Yes. In fact, globally some markets are romping ahead to dizzying heights as I looked at here only earlier this week.
With the benefit of hindsight, although not my favourite sector due to being capital intensive and reliant on the sale of commodities, 1999 was a great time to buy resources stocks. 2009 was an amazing time to load up on bank shares. Today, health care and materials companies are worthy of consideration.
Of course, this doesn't mean all companies in a sector are worth buying, or even any of them. There is no "one size fits all."
Resources influenced Perth and Darwin are seeing declining rents, the polar opposite of frothy conditions, while a number of mining towns have already capitulated. Canberra's property markets seem similarly uninspired.
I'm not sure whether it makes a great deal of difference, though. In my experience there exists a fair proportion of investors who are simply "shares people" or "real estate" people, and they won't ever be budged either way!
Stock valuations decline
6,000 now seems like a distant dream once again, although yesterday's dovish Board Minutes from the Reserve Bank reinstated a moderate easing bias, which may help to fire markets up again.
In fact, cheaper market prices equates to a greater array of buying opportunities for those with an appropriately disciplined investment approach.
Sydney property leads cycle
Of course, the main advantage that property investors have over share market investors is the use of leverage which can magnify gains...and losses.
Dare we even mention it, some folk even used 100 per cent leverage in the period leading up the the financial crisis, making the returns on "investment" extraordinarily high.
Risks to the downside
So, what's the catch?
Inner ring Brisbane is now seeing prices rising again too, though not for all property types and suburbs it must be said, and I believe that generic apartments will struggle through this cycle.
No tenants or related headaches. No repairs and maintenance bills, Quick and easy to sell parcels of shares.
This generally means the larger capital cities, near jobs and where people want and need to live - and is scarce in supply, which ideally means a dwelling with a land value content, and in a land-locked suburban location.
The long run data shows that even most average capital city property has generally done well through the cycles, beating inflation over time.
It won't be long before the Sydney median house price has doubled again since 2003, soon thereafter to be threatening the $1 million level.