the great housing debate, my story..., page-28

snappy1 - I feel your absolutely spot on with regards to the equity opportunity... The mum and dad investors have completely drained their equity lines to take advantage of the investment property dream, once which is a risk but with this risk could be reward.

No matter what you read though there are very few getting it right. Here is paper from what looks to be a professor back in February 2009 suggesting the down turn is about to begin. It also discusses how equity pushed the prices up significantly during the "boom" period. (Here is another 'use your equity' style article.

I also feel that this will soon come to an end the house price boom, but there is no way I am prepared to call a time frame or line. What I do like at present is that in my capital city people are still buying properties like they are cans of coke, yet mortgage lending has slowed down and the debt levels have also fallen.

I have also personally experienced dealing with the banks of late and can confirm that they have definately tightened their screws, not just to developers but to the regualar house buyers. People who had pre approval months ago might need to consider rechecking their status.

few things... 1) LVR seems to be dropping.. 95% was likely months ago, now 90% is is pushing it. 80% now is considered the norm and they still worry about this. 2) Valuations are coming in at realistic prices, and in some cases preventing the client from purchasing the property as it doesn't meet the asking price.

Anyway, I still feel there are bargains to be had out there.. I watch the market very closely, pretty much read through rpdata like its a bible to understand the areas I am most interested in. Until the overall demand for housing slows down dramatically, I feel there will be continued slow growth for a few years to come..

Shawnofc - Can I ask you something.. what deposit do you have and where exactly are you looking? I feel the real short term opportunity to have entered the market was early last year.. I saw some bargains come up and now wish I did.

Good luck

Regards
Kevi