cheaper housing on the way, page-7

There have been very few times in Australian history when median houses in median suburbs have retraced in value. Even in 90-91 those standard 3br brick veneers went backwards maybe 2%.

What happens is that "property" gets discussed as one group when infact it should be viewed in segments. Top level Toorak properties, Sydney waterfronts etc do show significant falls in hard times but suburban homes do not.

The reason is that 70% of homes are owner occupied. How many people sell the family home and move to rental accomodation when interest rates rise, not many.

Even of the 30% rentals, it's only apartments and top end stuff where the dumping occurs. When times are hard people leave expensive rental accomodation and move down to cheaper accomodation. This is why rental returns for median and bottom end stuff actually increase in bad times, because the demand rises.

Poperty is the most secure and sure fire means of increasing your wealth the only problem is it requires patience.