Uboy,"I ask again, considering we don't have the crazy...

Uboy,

"I ask again, considering we don't have the crazy unemployment and economic scenarios of US, Ireland, Spain etc....WHAT will cause Australian property to plunge 40%?"

Iron ore/coal two major contributer of our 'terms of trade' are already under pressure, both commodities are available around the world with many mines in africa/brazil coming upto production, so with high australian labour cost as it is and rising taxes(carbon/mining/royalty), even if china continues to grow will australia be an investment destination of choice?


I don't know by how much/when or even if it will fall,
My point is, In current Australian economic environment property investment doesnot provide favourable risk/reward ratio.

Just curious, With dollar as it is, what make you think we will not have a rise in unemployment?