"So a stagnating house price with falling/stagnent rent..."
Have you applied for a rental property in metro Sydney or Melbourne recently?
The demand outstrips supply significantly for good metro properties...rents will not stagnate unless councils relax the planning laws to allow more medium / high density development. With Australia's population tipped to grow another 10 mill by 2030, i don't see how rents will stagnate or fall from here.
And you say...
"Not many clearly understand the high leverage aspect of property investments, A property on 90-95% LVR.."
Are you for real? What % of all property ownership is at 90-95% LVR do you think? Are these the owners that will force a 40% plunge in property prices?
You're assuming all property investors are mortgaged to the max....The average Australian mortgage is nowhere near the medium housing price. We don't have the stupid US scenario that caused the sub prime issues. We don't have the 13% unemployment....
I ask again, considering we don't have the crazy unemployment and economic scenarios of US, Ireland, Spain etc....WHAT will cause Australian property to plunge 40%?
