After another discussion with hubby, with him saying we should now diversify into shares as we would be stuffed if property prices crashed. It got me thinking back to the old question.
What would happen if Australian property prices did crash? Specifically to rent prices?
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I have been investing from Melbourne-Cup day in 1983,started with 4k and have seen the up,s and downs in property and share markets over that period and one item that always seems to stand out is the demand for certainty ,plus I have been in this site for a while the only time when fear was scalable was when the interest rates were just below 8% a few years back,,when the "GFC" tidal wave hit and for us it was a positive accident
it was interesting to watch the share market data each morning and see our holding go down each afternoon ,,I did not give a stuff they were all less then 15 bucks when I first bought them some went to 175 bucks then back to less the 40 bucks ,one Bank went from just below 60 bucks into the very low 20's but I bought that well know big whale Bank for less then $12.50 so even at $26.00 I was still way ahead,i put 2 unencumbered titles on the block at $27.00 with that bank and bought all the bank would allow me,next day they went lower the same as the next few weeks lower,,i even started to walk past my various tool boxes thinking "FMD" "IF" this keeps going on I will have to put an add in the paper and start working as a wage slave again,it never happened the share market turned the rally that everyone thought would not happen happened,and inbetween the properties we control and I manage stayed the same prices never went down ,rent stayed ,,anyone can engage in strategies that produce very little volatility,,the only investors - that I know and the numbers are very small that went belly up during that period of the "GFC" were the ones sitting on a pile of dynamite of over 80% of debt and leveraged too the top hairs on their large heads,,the system just sold them out over a few short days..
Bottom line is investing has nothing to do with luck,you walk in one door accepting life will deal you a few psychological and intellectual difficulties
and over time you will see a series of small and large failures in life just be prepared because the next day is unknown,the same as the future..