Sorry I'm sidetracked but I can't see the Australian property...

Sorry I'm sidetracked but I can't see the Australian property market falling as much as it has in the US. My understanding is that people in US were lent money to buy housing even though they couldn't afford it, sounds weird but yes they did it anyway! Also in the US they built too many houses within the last decade and has caused not enough demand…i.e. too many houses for people. Compared to Aus it's the other way around we have people that want housing and there has never been enough houses , hence building industry has boomed so well. What will drive house pricing down is unemployment (have to sell house and get what they can). Aus Banks in todays market are tight a$$'s now, you have to go through alot of hoops to get finance. My prediction (opinion) is that houses that would require generally 2 incomes to pay off (2 stories, NSW Metro Property) the mortgage; will decrease in value…and the small ones will slight increase.

I will never buy a house that is dependant on 2 incomes…too risky for me…I would rather have a small house and then we pay that off or a majority then upgrade to the next house. Everyone wants a big house and if you get it too soon in your life you will suffer when one of you are made redundant or retrenched.

Thanks for listening people. Sold OEX today unfortunately - but only because I think it will go lower….great company and will buy at lower levels.