Please listen and do yourself a favor - just wait until you have enough capital to buy with greater equity and for prices to continue to come back. You might save a few bucks with this strategy however you will get hammered on the purchase price in almost all areas. If your equity gets wiped out by property price falls your loan would be among the first to get called.
Even the mortgage insurances contracts will fail to save you or the banks from this exposure because they have clever escape clauses.
If you cannot very comfortably buy a home there is no point investing at this stage. If you do not want to listen you will wish you had within a year or so.
Look up Steve Keen he may have been a little early but he is right, and has been right all along. The government stimulus just funded a delay to the fall in prices at our expense.
The Euro banks are related to a large part of the funding in our local banks and have withdrawn from this market. Lending is getting much tighter. This is a well meaning totally sincere warning - don't do it!
Wait - the market is coming in your direction. Cheers, CW
