"The sad thing is their fallback plan is if house prices do crash, they will be ok because inflation will eventally push the house price back up to what they paid for it."
Steve, even if your prediction of property falling 50% my PPOR that I paid $40k for would be worth say $300k. I have a small mortgage but that is for business/investment.
Now here is the thing, while my net worth would be less $300k I still need some were to live. If I sold to upgrade or down grade, other properties have dropped 50% so my relative position has not changed.
Know if property dropped 50%, what sort of punishment would the stock market give you?
