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Yes - dipping into the future fund sucks. I fear the next step will be the mortgage market being backed by taxpayers - either directly involved or implicintly involved via some sort of government guarantee.

Actually I have some commercial property REITs. They dropped so low in this credit squueze I thought them to be a good speculative punt. Will see how they go.

oh - thought i had missed something.

Don't know about gold - not into it. But other investments like stocks / mutual funds etc should move ahead as the assets underlying them are becoming more productive over time. That is economic growth. Houses are just houses and will always be houses. So that is why I see them differently...

I'm sure you are joking here - that would mean a 20% plus rental yield. Damn right it would be wise to purchase it!! I think in an ideal world / normal market rent should be at least equal to current interest rate x market value of house. It isn't even close at the moment.

I think the idea of buying the previous generation's overpriced assets and hoping the next generation does the same for me to make up for it is a somewhat risky proposition. So I prefer to let that opportunity go.

What is disposable income though? I assume it means income after the basics are met. If that is the case then this makes sense as the basics are becoming cheaper due to economic productivity which leaves us with more disposable income. So based on this you could argue house price rises...

Just because somebody made money behaving in a particular way over the last 30 years is meaningless when the path is unsustainable at the macro level. Follow the money trail for people who have created wealth from property - it comes from other people's unsustainable debt growth. Therefore...