skol,real estate is not all it's cracked up to be. it's not that...

skol,

real estate is not all it's cracked up to be. it's not that different from many other asset classes. they all may have their time in the sun, but as you can see in the last 25yrs the inflation adjusted value of housing in australia isn't that impressive.



granted you get an income from it, but there is a cost to servicing that debt, maintenance, insurance, council rates etc, and the hefty stamp duty up front.

now if you've borrowed the average amount and purchased a house in australia in the last 4-5 years, and accounted for all those costs i mentioned above including hefty interest, and softening property market, you'd be losing.

if you did the same with gold or silver, you'd be well in front.

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What happened in 1980? It crashed because it was grossly, incredibly, insufferably overpriced but loads of punters still got emptied out. Happens all the time and will continue to happen because that's human nature and that'll never change
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if you weren't talking about the gold crash you could have been talking about the real estate market collapse in the US. once again the fundamentals were not in place for either.