if property slumps , page-10

It all comes down to what I just posted.

The amount of debt being carried also is a key factor for if one is highly leveraged, then when the sheet hits the fan, it could mean the difference between merely taking a bit hit to having to sell the family home and declare bankuptcy.

It depends whether one thinks there will be crash where one's property may fall significantly in price. The banks aren't blind. Once the property's valuation falls below the value of the loan (many late entrants already are), asking for topping up won't be too far down the track. Forget about the nonsense about banks always give you time. They do that when prices are going through the roof, raking in billions in profit and they even boast about it as good PR.

If you refer to the classic pyramid, the majority of the market players and specualtors came in during the last few years, not those who bought at the beginning of the last decade.

In the 12 months preceding April 2010, we had a mad rush of the herd who thought if you buy a house you can go to heaven.

It's so easy to predict.