we have not even got close to a property crisis yet. its just starting. people were in denial about the stock market even with 2 major warnings. i have read and seen enough information around property to see that people would rather still believe in whacked out growth figures than face the prospect of a down turn. Its in front of our faces right now..the credit crunch, rising cost of money, increasing interest rates,increased stock for sale,increase mortgage stress. Our low unemployment numbers are keeping the show on the road at the moment. The key to these sky high prices were cheap money, those days have gone.There is massive leverage in property and we can see whats happened to property trusts with leverage..they fall over.its simply not a good place to be if you have a lot of debt. agents keep talking about rising rents but neglect to point out that people have a limit to what they can pay. the gap wont close for years and the rate of return is far to low when you can get 8% in a bank. House affordability is another term for 'to expensive' the market will always correct and its in the process of doing so imo. good luck.
