The US had a property crash because money was lent to people who literally couldn't pay . Further to that these financial packages were disguised by being bundled up and onsold to unsuspecting customers.
As I'm confident that hasn't happened here , I don't see property crashing in Australia anytime soon .
Unemployment is tipped to go into the 6% range. Please read that again . 6% unemployment. Not 25% or 40% youth unemployment like they have in some European countries.
So while we have been experiencing a slowdown , I find it very hard to believe that property is going to crash. In fact , given the recent $A dollar weakness , we may see a bit of a lift in parts of the economy that export . These industries have recently become 10-20% more competitive .
I'm that confident of this that I continue to invest in real estate as we speak.
