Dalek, On a personal level i dont care which direction property takes,if its up i will invest else where,if it drops dramatically i will buy.The trouble with current prices is that to much of the nations income is going into property repayments,interest rates arent high yet many who have entered or upgraded in property are using to much disposable income to pay their mortgage. I cant see a dramatic increase in wages over the next couple of years so that says to me that prices cant continue to rise.If i am wrong so be it but economics 101 states that money must flow into the real economy (retail,services etc) not into the banks coffers,that money must also come from real income (wages,dividends etc)not from more debt based money. The world still hasnt exited the GFC and Australia is in the same boat,to believe we have is naive at the best and possible stupidity.It is a fact that house prices are considered high in Australia not just by Australians but by world standards,although good for a select few it is to the detriment of the ecomomy in general.I believe prices will either stagnate for quite a prolonged period or drop,hopefully not collapse as this will be devastating for our economy and most Australians as a whole. Armageddon like articles will always pop up when things look shaky just like the property is going to the moon articles come out as prices continue to rise.I am happy to see both as they provide both sides of the story,it can be amusing reading both sides,at the end of the day there will be winners and losers.If you lose but learn from it you have still gained,good luck to all.
