***property still running hot*************, page-59

re: economist says apartment market 'gone' I think most of us are living in a dreamland if we don't think it will happen. Most of us are very fortunate to have never experienced high interest rates. Most of us 30 somethings think it is all too easy. Just buy a property and its guaranteed to go up. I don't mind admitting i got burnt by the tech bubble. I thought it was never going to end. I saw one of my stocks multiply by 20 and thought it would doulbe again. The crash tought me many lessons. I realise property has the fundamentals to back it up. But rental yields are getting lower and lower and people are buying property thinking they will get quick growth.

I have lived in Sydney and watch the market go beserk. I feel for the young family that saved for many years and finally got a deposit and bought a year ago. There might come a stage when they have negative equity in their homes. They will then live in that home for the rest of their lives.

I honestly believe the Sydney, Melbourne markets still have a fair way to drop. Unfortunately we will see a high level of marriage break ups, nervous breakdowns and suicides. Well, that is me being the prophet of doom. You never know, inflation might be kept low and the good times might keep rolling on.