"how about the home bought in 97 for 110k, now worth 450k and rented for 380 p/week.
think a 6% drop is bothering them?? pretty sure that ones making money.
lol"
Erm.....ofcourse not....that really isn't anyones argument here that is bearish.
The BEAR case is simply this:
- price action in the last decade is probably a bubble - right now is not a good time to buy and property cannot replicate it's gains above inflation and income that it has in the last decade. - property does not double every decade - property prices can actually go down - we expect property gains to be non-existent or at the very least very weak this decade. - the govt. shouldn't be socialising property "investor" losses and giving out what amounts to welfare to keep prices high. - rental yields are on RP are mostly pitiful - leverage works in reverse (shock horror) - inelastic supply feeds through prices on the way up and down. - supply probably won't be as contrained as people think once (if) wild speculation leaves the market.
etc etc etc etc etc......
pwinnie this property BEAR is a young man who recognises anybody born at the right time has done very well investing in RP, particularly if you purchased anywhere from 1997-2002/3, and would still be doing quite well if prices came off 30%. This property BEAR does not begrudge people who made gains on RP (his parents have made a mint). This BEAR simply thinks most BULLS are idiots who don't even understand WHY they have done so well, don't understand how markets function and in general and that their smugness doesn't match their intellect.
