Another area for pain which hasn"t been mentioned is in the...

Another area for pain which hasn"t been mentioned is in the seaside unit market.A lot of unskilled property investors have jumped into markets they don"t understand buying units for rental in seaside resort towns.Tourism can be fickle and move in trends.The recent trend of holidaying domestically can change quickly. Tourism like farming has lean years.With the price of many new seaside units going at mindblowing prices and many still a long way from settlement dates. The building industry workers who have found so much work in seaside towns building this boom have accentuated the rises and pressure in demand,Thes communities are only small by comparison to city markets and small amounts of money can really push them along giving false readings as to the real value and underlying demand.After the boom finishes the surplus workers often have to sell their properties and chase work. The building workers are building for themselves without sustainable employment and income.Many baby boomers have invested in the Unit market but their preference is often for a stand alone house or a caravan.I wonder where the tennants will come from for these units.Often they are saddled with high body corporate rates after the developers have sold management rights for high prices in effect locking owners into high ongoing cost.The values of these properties have pushed up rates sharply.But these properties still have to compete with overseas destinations for custom. I would think this is a dangerous area to have funds invested.