Okay we all seem to agree to disagree, lets try get some real eaxamples, so I will kick it off and the real life experience might makes all a little bit richer even if it is only in knowledge.
After a hectic short week at work where I had to get rid of a permanent part time employee that has been with us for 12 months, not nice as the slow down is effecting us all and now she says she can't pay the rent of $400 per week, tough I know.
I get home and I have letter saying we selling the appartment you renting in North Parramatta (been in it 4 years), I know the owner so I called him and he said in his broad Aussie accent "yeah mate, prices are dropping and I need to get me ass out of there before it drops further" now this is fact, I continued to quiz him and asked him is the sell price realistic as I may snap it up, he said I do not think it is but that is what the "realo" told me. Now that is a real investor...........? I then asked "surely you can ride out the storm if we do have a dip of 15% and rents drop a bit (positive equity), plus few interest rate cut, hang onto it buddy" he replied "not with no stamp duty concessions and the drop in prices I need to move on, sorry"
I wished him luck and thanked him, he thanked me for taking good care of his place and said at least you looked after the carpets as they still look brand new not like the last tenants who destroyed them.
Okay now you have a real live story - no fabrication just a solid blue collar "investor" needing to bail but the real reason could be anything 1. He is buying a 44 foot Bayliner 2. He found a good speccie on HC 3. He lost his job 4. He is behind on his other house payments 5. He has seen that there is 5 to 10 years of stagnation 6. Real reason he is nervous
Stay liquid folks, let me hunt for another rental and put my surplus into gold, silver and the odd speccie
