Completely Stuffed, page-90

Was thinking... just curious how you define "value".

I'm not being smart or anything, just want to know what is cheap or reasonable nowadays because I thought I was doing alright with the savings and stuff then suddenly everything just seem so out of reach after I looked into why a couple of people I know smugly asks how my adventures in stocks is going. Wink, wink, nudge nudge they got a few properties and are doing great, thank you for asking.

As to downside... have also been thinking, something you do on weekends when you have no business be at the auctions ... We always hear that with property you can never lose because it's always there, it's real etc.

I'm not so sure about that. I mean I know it's real and it's never going to be worthless [besides CC or a nuclear war]. But to the investor, their investment property can go to zero for them in a real hurry if they can't repay the mortgage.

Say they bought a brand new apartment in the suburbs for $650K. Paid that 20% deposit, that stamp duty, legal fees etc. etc. IF they cannot repay that mortgage and the bank repo it... the property itself might be flogged on for $500K or whatever, the investor's sunk costs/investments will never see their pocket again.