Where I live in Mermaid Beach house prices are still off their peak 2007 levels (and also in real terms in many parts of the country). So yes it worked for me and those who also purchased shares after the GFC which have more than doubled since. But now it's time to get out of all risk assets for the reason I've stated previously. So while stock prices can plunge 80% or more during the coming deflation, due to the degree of debt fueling Australia's housing bubble, prices could ultimately deleverage and deflate to a similar degree in areas that inflated the most. Leverage is thrilling on the way up, but terrifying on the way down.
