bricks and mortar put us into this crash and bricks and mortar will lead us out ....the govt will not let the banks fall over .( look at USA ) I have been in real estate for years , thru crashes and the boom years etc , made a few good calls , when you look at rental income and associated costs , you dont make much on your return either rent wise or selling wise . Buy for $300,00 sell for $400,000 in 6 years , profit of $100,00 right??....no $100,000 less stamp duty , less costs after tax deductions for rates and taxes , less interest payments after tax etc , then tax on the so called profit . eats away at your $100,00 profit real quick . The property can also devalue if flats , bottleshops etc is built next door or worse still your road turns into a freeway etc . Shares can rise and fall but the dividends and franked credits outstrip property all the time , have a look at schillers graph on property . If you dont sell quality property or quality shares if the market dips ...so what.. I mean do you look at the value of your house every day to see if you have made a profit ??? Buy houses and shares at the bottom...contrarian rule.. I bought real estate in 1980's when I was told I was mad by my accountant , he also told me I was mad when I sold some houses and bought shares in march this year ... Ive kept the shares and some quality houses both I bought real cheap. What did I buy...bank shares ofcourse ..oh NAB has cdo's of 14billion with a write down of 3.9billion ..why keep them...another cap raising on the cards???maybe..I suppose you think Im mad again...maybe I am...
