change complexity into simplicity, page-2

Very funny post. House prices rumoured to go down , sell , sell. You see this is not a stock, as with FMG , only the traders have this mentality. However the longer your time horison and the longer you tend to hold , daily fluctuations become increasingly meaningless.

Now a house you see is at least a 7 - 10 year proposition and majority, yes majority have pots of equity. New entrants understand its a home they are buying and are committed for better or worse in the short term. Ultimately it works out like the long term FMG holder. Big plus , and here lies the problem with a simplistic analogy you have given, a property never is worthless intrinsically whereas every share runs the risk of so being.