Take Hobart for an example. as the hobart example could mirror the rest of Australia in the comming year..
A once $500k property has lost equity of $42,500. That's $42,500 that cannot be borrowed against for swimming pools, holidays, cars etc But whats more important is that is $42,500 that cannot be used for investment purposes or to cushion ones retirement plans.
Is it any wonder retail and general business is getting skrewed. I know many business owners and all have had a very bad year so far.
With the mining boom about to take a hit I think we are going to see a very different Australia over the comming years.
At some stage though property will be a bargain as it gets oversold...just not yet me thinks...maybe 3 to 4 years?
