what if, your parents bought you a house, page-37

When buying any overvalued asset class - the likelihood is you will end up in tears. People who bought the sharemarket pre GFC paid the price as they were pacing in perfection and perfection never eventuates. People buying property in the last few years in Australia may have the same experience. The residential property market has barely corrected and some commentators including the RBA are already talking about the impact on consumer sentiment. That tells me two things - alot of our perceived wealth is tied into equity which is only real when you sell it and bank the cash
If we have a true property correction . Like Spain , Japan , Ireland or the USA the impact on Australia will be bigger than many imagine

I agree bad advice can Be found anywhere, you can get a 28 year old bank plannner advising you on equities, and you get get a year 10 drop out who has completed a 2 week real estate agents course telling you leverage up to buy property as its value will double over the next 10 years. In the end we make our own decisions, mine is huge leverage and near record prices and near record low yields ='trouble down the track

As for the example of 400k invested pre GFC now being worth 100k , what did he invest in - the Greek share market - seems to not correlate with even a scenario of one buying at the absolute peak