Dylan, if you check your mortgage docs I think you will find that it doesnt matter if you are paying off more than the required amount, if the property goes well into negative equity, the bank still has the right to sell your house for you to minimize their risk. Basically it is not your house until you have paid off the loan.
On the topic of loobs poem, the biggest property investor at work has just started to put up his first properties for sale having taken a bath. He reckons he built up to 1.2 million in capital if sold in 2007, now would be lucky to have 200k. These are in mining towns mainly, karratha and port hedland, couple in qld as well. I suggested to him and his wife that they sell all of them in mid 2010. If I was him, I wouldn't have sold them either but it's easy looking in from the outside.
