Stellar / Devo76 ..House prices stagnant or moving sideways for 5 – 10 years wont work with an investment asset that has a negative return & relies solely on  capital gains in excess of CPI & interest holding costs to make a return / profit. After a couple of years of negative returns & no capital growth residential property investment becomes unattractive. With a CPI of 3% & interest rate of 7% & rental yield  of 5% a property would need to have a capital growth PA of at least 5% to stay neutral (Yesthere are tax deductions that reduce these holding costs but there are also other holding costs Rates/Maintenance/Insurance etc that I have not included) The point I make is that property investment in Australia relies solely on strong capital gains offsetting negative rental returns it is simply not viable to hold the asset for 5 or 10 years if you suspect no capital growth? Why not sell out now invest in other investments  for 5-10 years  then entry back into property market when you can see capital growth going forward? It is difficult to understand why an investor would sit on their hands when they see or think there will be no capital growth for 5-10 years. Are you seriously saying sit on a loss for 5-10 years & miss the opportunity to cash in at the top of the market & use the money in more profitable investments until property shows prospests of better capital growth?? WOW I cant see the logic