I Think you exhibit a little tunnel vision when it comes to property investment. A real investor will be diversified in asset classes that provide a hedge to counter the drastic collapse in property that you have been forecasting for over decade. The hedging can be in many forms ie A collapse of the magnitude that you have been forecasting since pre GFC The true investor would diversify their portfolio to include PM's or PM's mining Shares as a hedge Most real investors have had multiple trades in property since GFC with the objective of reducing debt to asset ratio. A large percentage of the last of the baby boomers and generation X have a nest egg in super that would pay off their property on retirement. others have invested with the objective of sub division and bring down the cost of the initial investment Others are more than happy to sit back and collect rent as many in the building trade that I know have done. They stop building as they are aware of the tightening in property availability and know that demand will return as a shortage of property occurs. Being involved in the building industry I have seen dozens of examples where the builders have finished off their last project over 6 months ago thought the margins for the risk were a little slim and have decided to take a break living off multiple property rentals and the odd Reno here in there. They know the cycle will turn and are more than happy to take it easy for now. Add to this population increase, Cheaper loans, tightening of property availability and increase in demand On the flip side a collapse and hedging strategy will insulate as well The gamblers on the other hand their strategy speaks for itself
