simple exercise in understanding house prices, page-18

  1. 1,469 Posts.

    it takes balls to put all your eggs into one basket, with the amount of money that you put in, and the time it takes to pay it back to the banks if goes against you. its a good idea to heavily research everything to do with that investment.

    I can understand going into debt to buy 4 house's if the prices are at historic lows, but i would be very scared to have 100's of thousands in debt to a bank buying into a investment that is traveling at twice its true value.

    Goverments could release more land
    Goverments could remove CGT
    goverments could remove negative gearing
    RBA could keep upping interest rates
    Inflation could act on wages making property affordable resulting in renters flocking into their own props.

    from this hight, there is too much that can go wrong, and nothing I can see that can support, or push the price up.
 
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