housing survey, page-10

Funding is going to be a huge issue if the credit crises worsens and it looks like it will getter far worse before it gets better. If interest rates get to 10% then housing will not look attractive. Even if you sell your shares and buy into property unless you have alot of $$$ then you will still need to get a loan. If rates are 10% then you will be rerstricted to how much you can borrow hence house prices will come under pressure if people want to sell. They can hold but for how long? If it's an investment property and your losing money how long can you hold for???

The fact is that property prices rose too quickly on the back of low interest rates simply because people could borrow more...

Don't be so confident that prices will not drop by 5%, it can happen if things get worse and it looks like they will. Don't know about 30-50% but 5-10% is more realistic. But then again you never know do you?

Prudential regulator is investigating the capital of Aussie banks to see if they can weather out any finacial storm... The fact they they are investigating the banks capital is cause for concern. Maybe its a preventitive measure, lets hope so.