property crash here we come, page-44

re: rito - property crash here we come Rito,

Some people are pretty scary how much of a limb they go out on.

Whilst my wife and I have geared highly we have offset that with locking in rates (5.85) and only having the DHA as tenants for periods varying from 6 to 12 years.

The worst case scenarios for us (let's say 12% interest rates) will still be affordable but just barely. By the time the fixed rates period expires rents will have moved up somewhat although I can't say how much.

As to the cycle, absolutely!! We are now at the high end of the cycle and yes prices for Melbourne and Sydney will flatten out a bit. Brisbane has a couple of years left.

And yes there will be the scary people who have gone too far and will need to dump properties but they will not be the majority or even significant but they will command all the media attention.

I intend to retire like 1964dodge's dad with many properties under my belt and live a quiet retirement enjoying my grandkids.