Ask Colin

Is it only the headlines in the media that makes property look like a bubble. Can't markets easily go up 25% per year?

The media headlines are a symptom of overheating. They are one of the pieces of evidence. When everyone starts talking a bout big capital gains in a market, it is getting overheated. The media just reflect what the punters are interested in. Al the home renovation shows ..... frightening stuff.

No markets cannot go up at 25% per year easily for long, unless there is high inflation. The long term growth rate for the stock market accumulation index is about 12%. Sure there were periods of more than 25% growth - but they were the bubbles. In between were the bear markets that drag the long term average back down.