ask yourself this question: in a booming economy what do people do when they cash out their portfolios?
A: you can't get into property because you can't get the loan or you can't afford it or you can't raise the deposit
Sorry I couldn't resist :). In all seriousness, current housing market is recognised as being least affordable in Australia's history - so how can one consider property stocks cheap? I believe it is reasonable to expect rental (and thus housing) prices will not outpace wage growth in medium to long term, which doesn't make for a terribly attractive investment option. I simply don't see where the money would come from to pay the increase in rent, if there is not a corresponding increase in wages, given present affordability levels.
If you're talking about investing in property abroad, perhaps the US, then you may be onto something..
