I think the example of Perth (I know I use it again) is worthwhile. If prices stagnate, then negatively gearing a property is really not a very good idea. As listings have tripled, I think a lot of investors are deciding to take some money off the table. They don't mind if they lose 10% compared with six months ago; most are up about 100% in three year's time
So unless you're foolish or very greedy, selling now seems like a good idea. A long period of gradual price declines or stagnation is a very effective way to destroy wealth if you are geared investor. The analogy with margin loans is one that property investors either overlook or dimiss outright.
