Edited 28 Aug 2017 18:52, 4 years ago, edited by HardWorkingMan

people haven't been investing in property for rental values for a number of years.  Where they are making their money is in capital gains.  There seems to be a belief that property prices can not go down or even level off.  They don't remember the late 1980s/early 1990's when I had a discounted interest rate of 9% when the public were paying 18%. I had a unit for 5 years and the price went up for the first 4 years and the 5th year prices dropped so I got back at auction exactly the same price I paid for it.  That price didn't include stamp duty etc either.

I sort of won though because as the market was down I was able to purchase a property I would not have otherwise been able to afford as I upgraded from a unit to a house. That property sold in 2012 for 5 times what I spent on the property and renovations. The new owners then demolished it to build a McMansion on a large block a genuine 5 minute walk to the station (not a real estate agent's 5 minute walk)