the great housing debate, my story..., page-44

Makybe you are right that property all cannot keep going up forever and I fully expect a level of correction (not a 30%+ overall correction) and a period of price stagnation. However all property is not the same and does not grow at the same time or by the same amount. Property that is likely to feel the worst of any correction will be the higher priced properties in some of the more desirable locations - that said though they will potentially go back up quicker if they are still desirable areas when the economy recovers more. The lower end of the market will likely only experience smaller falls as there will always be plenty of people either by choice or necessity looking to enter at the lower end of the market. Plus it is a good area for investors as there are always plenty of people looking to rent in these areas. From my perspective entering in the bottom end of the market in any of our capital cities you have very little to lose, and that risk gets lower the longer you intend to hold the property.