Its happened before redmond in 88 I bought a unit on the beach in Melbourne bayside for 28g sold it in 91 for 73g thats more than double, but in 94 the same unit was up for sale for 43 grand and I bought it again. Look I agree with street and molonski while property is a great investment, you still have to be careful where and what you buy. For me after the o7 the prices where high no one can deny that. But for mine prices dropped more in the march july quarter and have climbed a little in the areas I am interested in. The biggest problem for me now is the quality and position of homes that are for sale, there is a lot of badly positioned, smaller blocks and real crappy houses on the market. The blocks are to small to develop the houses aren't really worth a reno and are knock downs. but the position and size won't let you make money on them. Its like all the people who bought badly are giving up while invesors with houses that are ripe are not selling and when they do they are snapped. The biggest problem is we are all segmented and most likely know our areas and price movements, which can vary so much from area to area and this is the reason why some quote big drops and some say there area has gone up. I know for myself any project that I start now will be a little smaller ( house size or town house size) but will be more open plan to give the appearence of size but the quality will still be there. These days it about adjusting to what your market wants 6 months ago it was different. I still don't believe that 50% drops will come but am open to an adjusting market as we all know a property is only worth what someone will pay for it.
