Hang on - thats a bit too quick for me. Will need to sleep on that. No wonder I hated and did not understand economics at Uni - and I majored in it!
What would you or I do with cash if we sold our homes?
Consider the scenario
Have 600k in bank. Now to maximise return you need to lock it in for a while. Could be tempted to put in for 2 - 3 years fixed deposit to avoid the drop in rates. No tax concessions - so pay more tax - if inflation is really 10%? Massive loss! If houses don't plunge and I have to get in 3-4 years time and they have gone up - ouch again - even if it is only 10%. May then need to take out an extra mortgage of 60k, plus re-entry costs, plus 40k say, plus more to go elsewhere if landlord sells or whatever.
Then if you don't buy after 3-4 years and rates are down to 0% as some of these Einsteins say then what a clever decision - actually all quite very very very stupid - you will then get 0 return and that will have a HUGE stimulus to property and the chances of prices racing away will be massive - guys am I missing something here? Sheer lunacy on the premise that maybe real estate will plunge. Think I will take my chances and stick with property. Will sleep very soundly today. Few rent inspections tomorrow - any sign of ratios on any piece of paper and the rent doubles!
