Good point The Dalek, lot of the property spruikers are not...

Good point The Dalek, lot of the property spruikers are not looking forward at this.

If you understand that the push of price up from a 3.5ratio is just investor money pouring in, then the price change is not real and only caused by demand from invesotr money only.

When the cycle reverses and investor money stops pouring into housing this high ratio of 7 falls and unless there is some kind of support will return back to a normal and fair 3.5 ratio.

So not only does your equity evaporate on you, but your return from rent also evaporates. Because if your house halves in price, no one is going to pay rent on the property as though its worth double as they can take a mortgage out instead.

So your rent halves, your equity halves, but your interest on your loan doesnt change.

So its a catch 22, soon as house prices start to correct the selling will start from the investors.

and lets be honest house prices cant go up any higher than they are now, look at how volatile the prices are over the last 4 years, its not a smooth trend which means the bear/bull sentiment is riveling each other, and we all know the bears win at the end of the cycle, just like the bulls win at the start of the cycle.

you cant fight fate