Alan Kohler is right that in times of hardship the pressure is downward on the lower end of the market. I saw this in the 90's.
People who used to rent or own on the waterfront sell up and move to less salubrious places.
Four bedroom renters move into three bedroom houses and three bedroom renters move to two bedroom houses.
This is why median houses never fall in value. In good times they benefit, albeit not as much as the top end of town, in bad times they catch falling stars but maybe don't benefit as much as the bottom end of town.
It is steady as she goes for the vast majority of Australian houses, steady rises year on year, safe as houses. Suburban brick veneers, the backbone of the nation.
I dunno about the rest of these property investors on here but I have kept to median houses with good rental returns. Sometimes I have seen better than expected capital growth but generally speaking it has been steady as she goes.
That's why I can tell the dreamers to keep waiting for their 30% drops and be secure in the knowledge that they will be waiting forever.
