re: another thread on ppl that missed the property
Hey Johnrap,
Very few posts in here makes sense, but you are right on the money. I just can't understand people being so confident on their judgement of the market, that they sell their primary residence and rent. Why would anyone do that is beyond me. Successful investing is about diversifying, and I don't mean buying a gold stock and a bank stock.
The only thing that would cause a problem to the property market in my opinion is unemployment. If this were to increase dramatically for whatever reason then people conceivably would have problems paying their mortgages. Interest rates are unlikely to rise significantly but even at 10%, someone mentioned that 10% of loans would default. That is just a plain ridiculous statement.
And yes, people here say they are selling up because of a property crash, and therefore parking their money into shares. Don't be mistaken a property crash of any proportion will affect Australia's economy which will in turn affect the stockmarket of Australia. You do not want a property crash no matter who you are. If you are adamant about this possibility then start investing overseas.
To the guy suggesting auction results are being doctored, that's been happening forever. Real estate agents don't want to show they are not selling, no matter when and where. It is not a sudden ploy now to prop up the market.
One thing for sure, there's enough creativity in this bunch to make up a very interesting fictional novel.
