mark bouris highlights the unspoken fears, page-38

Your position is clear - and you are entitled to it.

I would advise anyone having to sell to get in a boarder, rent, do what you can but try not to sell. You are preserving a home and not an asset and entry and exit costs mean you may never get in again.

World will get better again 2-3 years time and then what ?
Save 10 years - then qualify again and whoops here we go again!

Prices may level out - even drop - but hey the worse the location, the worse the condition , the worse the price.

Hey everyone sell all your RIO, BHP - I have special information - CNP plunged, BNB plunged, ABC plunged therefore whole market is tunnelling down - you know that is not the case. The statistics are showing good real estate in most locations are up, employment is high, immigration is high, resources boom is no where near tailing, inflation is up, interest rates are up - mixed signals - compare that to the US and its a different kettle of fish.I dispute the figure you quote about mortgage stress, its not the mortgage stress - its financial stress - if these folk get out of their house then they will substitute this for housing stress. If the bulk of houses are owned by property investors that will mean they will pay more for rent eventually. I have just watched a nephew of mine ditch his home , his excuse was mortgage stress, rent is now, a year later ,the same as his mortgage, but he has his new ute and big screen TV so all is sweet. He has set himself back 20 years.


Are you a permabear? I doubt it - I am not a permabull but just someone who is a contrarian investor and able to envision the current reality and trying to anticipate the turnaround which will come. We all knew the frenzy of the boom ended so will the frenzy of the doom and gloom we see come to an end. Everyone is still going to sold out concerts, restaurants, liquour stores, buying cigs, driving instead of walking despite the petrol price . Not that desparate yet by a long chalk.

If Armageddon comes we are all in trouble - and I would rather sit in my own home and contemplate my navel than be in a tent being comforted by my worthless fixed deposit.