new home sales fell further in march, page-13

Now you have the idea but you need to watch your timing.

Watch the areas you are interested in closely. When you see more people turning up at auctions then get the trigger finger ready.

My forecast is rental returns circa 6.5% maybe 7% by early 2009 just as interest rates are dropping.

The media won't react quickly enough, by the time you read about increased clearance rates, increased capital growth etc you will already have given up some easy bucks.

That's not to say that you won't make great money if you wait until 2010, you just won't make as much.

If you wait the 4 or 5 years you are talking about I am afraid you will be buying into a flattening market.

Keep in mind that the cities are not synchronised. Generally speaking Melbourne and Sydney lead the way, followed by Brisbane a year or so later. I don't know much about Perth, you would need to speak with Dhuy about that.

Sydney looks to me like it is a powder keg waiting to explode. I don't know it as well as Melbourne but will be doing some research in the next few months.