sixty minutes, page-45

If you look at housing as just another asset, and you look at the graphs of their increase in value over the past 7 years, you would have to say that the day of reckoning is coming on this asset class. Just like the stock market in the past month.

I have been looking to buy for the past 5 years, I have the money to pay cash outright, but it just feels overvalued, just that gut feeling. I think buyers, now, are just going to say enough is enough, I will only pay XXX, as that is all I can afford. And what you think you can afford post October, will be a hell of a lot less then earlier this year.

Mr Rudd has targeted housing in his package because house values strike at the very heart of how Australians feel about their fortunes and future. Take this away, and we are going to really feel things are going down the gurgler.

Reductions in house valuation would be bad for the banks which have these as guarantees against household debt that has skyrocketed.

We have been told that our banks are really strong....what happens if house prices start to drop? You start to take another pillar of support away from people.

I hope that prices just stagnate. This would be best for all involved. We don't need anymore crashes.

I think the world has pressed the RESET button on asset valuations. Take all the credit away, and see where the chips fall. People's expectations are changing. Cash is now more valuable. If a seller wants my cash, he is going to have to me me more for it i.e. I want more house for my cash.

Good luck to all. Tough time, but also opportunities.