With Australia’s projected population revised by 7 million extra to a projected 35 million by 2050, this means we will need an extra 70,000 homes a year, according to an HIA spokesperson.

Australia already has a substantial gap between supply and demand and can’t build enough properties to keep up.

And the Global Credit Crisis has simply caused this gap to widen, with many Developers unable to get finance to complete existing developments or start new ones.

Thus the gap is set to widen with obvious consequences for house prices and rents and affordability.

Rents for Residential Properties will continue to boom and increase even faster over the next 2 years, particularly next year.

Sydney is where rents will rise the fastest at 7.1% annual growth from 2010 to 2012, followed by Melbourne 5.6%, Brisbane 5.0%, Adelaide 3.4%, Perth 3.2% and average Australia wide 5.8% (according to BIS Shrapnel).

This is largely due to the continuing increased demand from high immigration and the economic recovery combined with a Construction Industry unable to keep up with demand.

For Property Investors this is very good news, boosting yields and leading to further price increases.

With Interest Rates still low, albeit slowly rising, investing in Residential Real Estate in Australia is a very good option and everyone’s portfolio should have a large weighting towards Property.

I’m personally increasing my Real Estate holdings in the current market as I’m confident the market will perform well.

Despite these obvious long-term pressures on house prices, there are still a few so called commentators who delight in trying to talk people out of Property investing, because it’s going to crash.

Professor Keen and others such as so called Consumer Advocate Neil Jenman claimed prices would crash 40% because of the Credit Crisis.

As predicted by myself and others, it wouldn’t happen and it didn’t.

Shares crashed by up to 80%, whereas Property in many places didn’t drop but remained flat. Other suburbs had a small drop which has largely recovered already and are on the rise again.

The larger drops were restricted mainly to the top end, particularly in suburbs like Mosman in Sydney, however even this suburb has seen some significant price rises of late.

Despite this, they are still claiming Australian Property will crash based on the US and UK, but their analysis is deeply flawed.

There are also some intelligent people who believe the Earth is still flat and belong to the ‘flat Earth’ society, despite the majority accepting it’s not flat and dealing with an updated view of the world.

I’m not saying Property will be all smooth sailing, but I’m strongly suggesting the fundamentals do not suggest a Property Crash of significant proportions.

Personally I think many of the so called Property Naysayers also have ulterior agendas.

I’ve heard many sad stories of people that have listened to the naysayers years ago with tears in their eyes, as they now realise how much money they’ve lost by listening to those with agendas or flawed views.

I mean who would have liked to have bought more Real Estate 15 years ago in Australia?

Of course, we all would have.

But that’s hindsight.

To become wealthy we have to have courage and take foresight.

And I’m willing to bet that in 15 years’ time there will be more tearful people who listened to the naysayers and didn’t invest into quality Australian Real Estate and will be regretting it.

My advice…

Get educated, have courage, ignore those naysayers with agendas or bias and make intelligent decisions and above all, take action.

It’s what you do today that will determine your results in 5, 10, or 15 years from now.

Many people won’t invest because of a fear of being ripped off. Yet even if you’d invested years ago in Gold Coast two tiered marketing scams by holding the property long-term, you would still be well in front, so taking action even if you paid too much for a property at the time still means you’re better off than not investing. Add some basic due diligence and you’ll be even further in front.

Personally, I’ve inspired tens of thousands to become investors in Australia and around the world over the last decade.

And to highlight I’m not bias towards Property, I’ve taught people also to profit from the Share Market via Share Renting and other effective strategies.

Ignorance is not bliss.

Ignorance results in Financial Pain in life and being easily fooled by the naysayers in life.

My millionaire mentor always said;

“Jamie the key in life is not to be cynical and never take a risk, nor to be too gullible and fall for anything, but to have a healthy dose of scepticism. And remain open minded so you do your due diligence and take intelligent action, rather than being paralysed by fear, or doing something you’d later regret”.

Thus why most never make it financially.

It’s not because they can’t, it’s because they are either too cynical or too gullible.

Tread the path down the middle where it’s less crowded.