This is the problem we face, people can only see blue sky ahead....property always goes up...wrong! Look at the late eighties/early nineties.
People always talk about interest rates and how it's very different to the late eighties....wrong! It's actually worse now as debt levels are higher. A move in interest rates will have a greater impact.
How many times do you here "negative gearing is what makes you money"....wrong! Why would anyone want to spend a dollar to get fifty cents back in this property environment? Alot of highly geared out there at the moment.
In simple terms, debt levels are way too high to support further increases.
