Ok I read this post and although I didn't want to get involved in the whole negative- positive+ thing. But I can't help myself.

Everyone's situation in life what ever it may be, is an accumilation of their thoughts, dreams and imagination.
You are what you think, no more no less.

I choose to look on the bright side of things, I believe things will be ok.
But I still make my investment decisions based on research and a little positive attitude.

I believe that a 3 bed townhouse @350K within 10km of the major CBD's is a better investment option than a 3 bed house on large block @350k some 25km from cbd because of the increasing costs of fuel.
Alernative fuels are definatley going to come online in a big way but I reacon there will be a big time delay between affordabale alternitive fuels and the effect of peak oil on petrol prices.

I have spent a whole lot off time reading investment books and watching property investment DVD's lately to learn how these people succeeded in becoming financially independant. The one thing all these people have in common is they are positive people, they walk the talk. If you want to be succesful in any chosen field in life surround yourself and learn from positive people. If you listen to negative, pessamistic people guess what that's what you become. Stay focused, educate yourself always continue to learn and surround yourself with inspiring people and you have more chance of getting it right than hanging around doomdayers. An most of all if you want success you have to step out of your comfort zone and have ago.

Just brought a place in Port Noarlunga SA, 3 bed home 6 offers in on property from 1st open. Missed out on the last two I put offers in on.
Went to an open inspection at moana on Sunday gone, was sold on 1st day, they had the open to advise people and get names I think.
I thought the property market was meant to stay subdude for another couple of years?

For me times like this cash is King, but don't take your eye of the game as some good opportunities will be coming. 
Property and shares will present some good invesments in early 08, thats my belief.
I think everyone is going to get a lot more nervous before this all plays out, add one or two more interest rate rises into the equation to slow th economy and bam opportunities everywhere.
By mid to late 08 the Reserve Bank will start to lower rates, people start to feel good again and we are off and running.
Well thats how I hope it all to pans out?

I think the aging baby boomers will create a massive surge in immigration beyond the high levels we are already experiencing.
In SA alone it is estimated that over the next decade 380, 000 jobs will need to be filled because of the retiring boomers.
The only way these jobs will be filled is by increasing immigration, skilled people who bring a reasonable amount of money with them. So they can afford to buy into the housing market which will feed into supply and demand problems.
The older people I've spoken to have no intention of selling their family home and they are in good health. So they should have many years of happy retirement.
So for me I think this will be the basis for substantial returns on property over the next decade and I guess this will be duplicated around the country.

Foundation you really should get out more.

Hi sunsetred,

I agree with devos comments with regards protecting yourself. Everyones circumstances are different, take me I earn an average wage but my job is very secure even in a recession I would still be in my job. So I take this into account when I work out how much equity or cash  I want in reserve for when we have a economic slow down. The good thing is everyone has to live some where so as long as your tenants remain employed during a recession things should be reasonably ok.

With regards to the resource boom I was reading an article last night about the resource boom, fat prophet stockmarket research says the party might only just be getting started. They went on to say maybe this will be a one in a hundred year resource boom? Who knows but imagine if they are right what will that do to house prices? You should check out their site great for research.

I went down a similar path to yours, done a reno then sold it, brought a new car because the money was there.
I do things differently now, I hold the properties and buy another one using the equity I,ve built up. This works better for me, takes away the temptation to spend money on things I don't need.
But hey everyones path is different, not preaching though. I spent countless hours reading different topics on this forum and books, for me it now makes sense to hold my properties.