"I worked 15 years in Real Estate it's how I managed to retire early, I have seen booms and crashes first hand but one thing is a constant on average housing always goes up long term. And in every down turn comes great oppurtunity, oh and great rental returns...LOL."
Hey Baron1, doesn't this apply to any quality investment? Just look the the sharemarket.....exactly the same thing. We are not talking about long term here, as all trends up. What we are saying is that, like all investments, we have the good years and then we have the bad.
Now, given you made your money in real estate, you would have been aware of property prices dropping y up to 40% in the early 90s. I know a few people who own the highest profile real estate agencies in Melbourne who almost lost everything then.
Now, obviously when any market falls by this amount it is great buying as long as you can see it through. I agree property is a great investment, just like shares. However, they all go up and down. In fact, the compound return of the all ords is greater than that of residential real estate. Now you can then isolate pockets, just like you can isolate shares (which counters the argument you need to know where to buy.
