i have said it before and i will say it again, page-9

kalmsg and others,

"If Joe average goes speculating in real estate the prices will go up and interest rates will follow"

Welcome to the eternal cycle brother!!!

That is precisely my point.

I want you all to close your eyes and project yourself into the near future, let's say 6 months from now.

At that time this is what Australia will look like:

1) We will have a gloomy environment where many areas have seen property prices stagnate and some will even have seen falls. The media will love to focus on those rather than on the areas that have gone up.

2) We will not have "hot" auctions, we will have subdued auctions where buyers can take their time and find bargains. It will be a buyer's market.

3) Rents will be very high thanks to the lack of supply.

4) The share market (other than resources) will be awful, more and more investors will be walking away and wondering what they should do to secure their retirement years.

5) Immigration will be continuing anabated and infact will be ramping up for 2009. The government knows they need to prepare for the mass retirements of baby boomes only 10 years away.

6) Interest rates will be down and showing signs of plunging in the near future thanks to the increasing demands from tourism, retail, manufacturing and even the resource sector. Everyone will want the Aus dollar to go down and for that to happen interest rates must drop.

What a perfect time to buy property.

Rental returns high, buy-in prices low and not much competition, demand increasing and borrowing costs dropping. Also a flood of new investors looking for a better alternative to the share market.

The perfect storm folks and it is my Christmas present to you.