Ann: Dividend/Distribution - COF, page-113

a 20% drop over 2-3 years would definitely be a recession, if not a depression! It would be likened to the greatest housing crash in history of 2008/09. The last housing crash similar to this was the Great Australian property crash of 1891. These kinds of events do not come by regularly, so to expect another 15-20 years after 2008 is unlikely. That is why I invested into commercial as I see this way undervalued.

We have a trade surplus, roaring employment, immigration/population growth and modest economic growth fuelled by the resource sector. Wages are slowly catching up also. The market will not allow real estate to plummet in these conditions, especially when prices justify investment for said returns. Reality of economic conditions would suggest that we are not in a bubble of any sort, therefore a crash is highly unlikely. A price drop of 5% or so in 12-18 months? Probable if not possible and already in the making. Is that significant? No!