If you watch RE cycles, as you no doubt have, then you'll know that RE is a long term investment of min 5-7 years and more like 10 years.
Yes people who purchased at the peak are locked in for a number of years as they may be sitting on negative equity. They can sit tight and ride it out or sell at a loss. This is not unique to Perth (Sydney had this for 6 years from 2003 - 2008). Neither is it unique to this cycle - it has happened in every other previous cycle too.
What is your point?
People care about other people and we've sorry for their situation. But people are responsible for their own investing decisions. No-one forced them to buy when they did or forced them to sign a mortgage document. If it all turns bad for them then there are safety nets, Centrelink etc.
Worst case scenarios do turn out to be everyone's corporate problem. But our taxes provide for that problem on a personal level.
On the other issue - is it my problem that the market peaked and then fell? No that is not my problem. It is just the way it is. Learn from it so it does not affect you next time, is all I can say.
Oh gimme a break
Do you want the goverment to step in when your shares fall in value too? Or limit sellers dumping shares onto the market and causing the price to fall?
That is
one of the risks of investing. If you have one IP in there and a few spread around - then you are fine surely? It is called "diversification" and helps to mitigate the risk.
What is your point? You seem to present these long diatribes on what can go wrong in investing and then point out the bleeding obvious on what you can do if sitting on negative equity. Most people on here would know these risks.
You don't go buying in Perth & surrounds, even if it is your home town, when the median price exceeds that of Sydney (as it did for the first time ever) and not expect some falls or at least some volatility.
Now if you have something to share on a personal level that could help people, I'd be happy to listen.