are you ready for the property crash, page-8

Dhuy it was a generalization I dont if you owned much property in 1989-94 but if you did you might remember the times as like these times

Folks were buying multiple properties , borrowing against one to buy the next, great slabs of the SMH and Tele were devoted to property, all the same psychological conditions, the LVR was lower despite 17% interest rates, now we are higher leveraged on lower interest rates

and folks are still saying the same stuff, well they arent making more land anymore, the inner suburbs are over blown but the beaches will hold up because folks want to live close to the beach, the higher properties will hold up better than the lower ones, the lower ones will out perform the higher

the problems and it is now was that major newspapers get a considerable portion of their income from property advertising, so they run the good news stories because its in their own self interest, only when it undeniable do they start to weeken and tell the reality

then the middle property sections in the paper will start to shrink and the cycle will go on

the problem is if you have a large leveraged investment in an increasingly illiquid market most folks dont want to face the truth, the read the things that provide them the comfort they seek