I'm probably going to get many negative responses to this. However, I am sick of rampers...I will never agree to a complete capitulation of any market, shares, forex, property or any other market. Most of the statistics that the media and the like are based on medians, these are never accurate you can ask any maths or physics expert on that!
All properties are based on sub-markets. e.g. Suburb, Land Value, Property Type, Property Position, Suitability per buyer, Rental Vacancies, Ownership to Mortgage Ratios and most importantly Demographic!
Not all sub-markets will be impacted by a recession, yes there will be an increase in jobless rates, even at 10-20% in a bad recession, there will be a major impact on property value as a whole. However, you are not remembering that the 80-90% that continue to move on through these times, causing sub-arkets to not go the way of the overall norm.
Smart investors will continue to profit in bear markets with diligent and well thought out strategies. An example of this is to decrease your borrowing, re-access your loans, change of loan types, asset and ledger evaluation, tax deductions and minor cosmetic renovations for increase in value and rental.
Remember that you maintain your own risk and this should always be managed, see a professional financial adviser when making big decisions not wasted time on opinions and median statistics.
Cheers All, I wish everyone a safe, secure and succesful 2009!
