"So a home worth $1,000,000 now will be worth $800,000 in say 3 years but if you sell now and stick it on deposit you will have about $1,200,000 in 3 years time. Assuming rates don't go up? That looks a huge incentive to sell, even if it's only a 10% fall and sideways for 2 years? "
1) Despite all the scare tactics most people don't buy $1 mil homes. 2) There is no guarantee that prices will drop or when they will drop - unless you are Nostradamus. 3) Buy sell costs for this sort of property would be in the order of $50 to $100k. 4) You will lose a chunk of your capital gains in tax. 5) Any income made off the deposit will be taxed
If you are already in the market it is hardly worth the effort providing you are an investor with a long term view, in fact if you are only going to deposit the money you will probably be worse off.
