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Old 25th Nov 2008, 11:38
  #9 (permalink)  
CHAIRMAN
 
Join Date: Dec 2003
Location: AUSTRALIA
Posts: 209
Wally you're right, over the long term property has been good.

But I wouldn't have liked to have purchased an investment property in the past 12 months!........but in the next 10 years, if you can hang on, you'll do well.

The share market is really no different, just easier to get in and out of, but it's a long term thing the same as property.

The key is to either switch quickly when things go titsup, or stay in for the long haul.

In the old days, super funds would recommend switching funds to cash within 5 years of retirement - now greed has caught the retirees who thought the gravy train would never end. I have no sympathy for them and their smartarse advisors who told them to stay in high risk.

The share market has already retreated severely. What is about to happen in Aussie in the short term is unemployment is rapidly rising - this will bring about a partial collapse in the property market from bank foreclosures. Remember that Mr and Mrs Joe Public have never been so committed to their mortgage as now, with both incomes necessary to service the debt, and maybe the one ar two investment properties! Take one wage earner out (and maybe also in the investment property) and there is deep doodoo.
The banks will run scared, and very little mercy will be shown.

All you youngin's out there take a tip from me - work hard, be good to yer mum.
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