I dont get why people think imigration is going to make their property investments safe.
Prices of housing comes down to interest rates.. the reason a small cheap house in the UK can sell for $700,000 AUD with people earning same wages as us is because they only pay 2 - 4% on interest rates
The higher interest rates go up the less people can borrow and the highest price they can pay for somethign tumbles.
Credit crises has at least 2 - 3 years to go yet, with interest rates most probably going up through this, combined with inflation in prices from oil and everything else the housing market cant do anything but crash.
All housing in australia is now over valued by about double.. which leaves a big percent for a drop.
And to go back to the original question, yes, i think when housing tumbles the stock market will take of, as all your property ivnestors will move into the stock market to make some money while the propery market cycles down. So money will move from property into stocks.
When that happens I plan to sell up, and then buy my new big cheap house with the profits!
