The problem is that these people DO NOT have enough money to buy a $500k house. They just use the equity in their own home to borrow the lot or some scams actually use zero deposit scenarios. That's how they are sucked in. Why people would do that I don't know. If you initially cannot afford to buy a house of such value then what makes you think you can afford it after going to one of those seminars....because they make you feel good.
Real estate is about fundamentals and psychology. We are now in the psychological phase as fundamentals are thrown out the door. It is what is being drilled in to peoples heads at the moment that has caused the rises of the last couple of years.
I still chuckle at the Comm. bank commercial, you know the one, "Equity Mate"....well soon they might have another one...."Negative Equity Mate"
