"Debt is necessary to inflate asset values; take it away and asset values fall," Mr Moss said. "Imagine a world with no debt and there would be less development, smaller buildings, cheaper finishes and fewer home owners.
"You will also see fewer property developers and fund managers driving around in Ferraris."
Without debt, most real estate would be cheaper, he noted. The average house would only be worth what a person could save during a lifetime without 90 per cent financing..
"Most of our wealth has not come from wages less living expenses, but from asset inflation."
http://www.theaustralian.com.au/business/property/property-values-sliding-says-bill-moss/story-fn9656lz-1226169144054
property values sliding
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