i've asked the question of a real estate friend of mine many...

i've asked the question of a real estate friend of mine many times over the last few years. he's always maintained that real estate is the best investment and dont sell.

he's changed his mind.

dont panic but get rid of your investment properties were his words. although prices haven't dropped too much yet, he's expecting them to because houses for sale aren't selling that well. when its hard to move them eventually those who need to sell will drop there prices. the correction is still in the early stages.

he always maintained that prices wouldn't drop until there was higher unemployment. but that was based on owner occupiers. the pressure is coming from investment properties that no longer appreciate and return 3-4% a year while costing 10%.

might be some bargains about in the next few years with interest rates likely to rise and put more pressure on those that are over committed.