Looking to make money in the fastest-growing Australian housing markets of Sydney and Melbourne? You've probably got one year to lock in gains of up to 16 percent, and after that — well it depends mostly on the government.
That's according to forecaster Louis Christopher from SQM Research, who told CNBC's "Street Signs" that there are a few triggers that could force a correction.
"I think, roughly, we would need to see a 50 to 100 basis point increase in interest rates: That would be enough to create a correction in the marketplace by the order of maybe some 5 percent for the first year. Now the risk is that if we see the [Reserve Bank of Australia] lift by that amount over the next two years, and [Australian Prudential Regulation Authority] step in the market rather aggressively, that's when you could see potentially a far larger correction in Sydney and Melbourne."
And that's just Sydney and Melbourne. As for Perth and Darwin, you won't make any money this year if Christopher is right, with house prices predicted to fall as much as 9 percent this year before a slow recovery.