mortgage resets are a problem. The fact that it's not visible yet means nothing. Everything takes time.
The fact that the US dollar has risen has to do with the offselling from hedgefunds as requested by ( amongst others european ) banks. This is done in dollars which will be shed very soon. The dollar is plunging , and will plunge much deeper. The trillions of dollars required for the bailout will make the dollar fall further.

To think that a lower dollar is good for the economy is, to say the very least, ignorant. Your BHP executives might get more dough but 99% of the people will have effectively lost 30% purchasing power. Mining company shareholders get paid in ozzie dollars. It's a sham to make you think that australia will get rich by a freefalling AUD. Have you gotten a payrise of late to make up for your lost money ?

If you think USD is a safehaven.. well, I wish you good luck with that

How about The Economist ?

http://en.wikipedia.org/wiki/Image:EconomistHomePrices20050615.jpg
Please do some research by yourself. I'm getting bored of serving everything on a silver plate around here.

You clearly have no understanding of what you are posting. Houseprices aren't made up by the value of what's on the piece of land. It's made up by the piece of land. This explains why a coastal property with nice views will be more expensive than a inland property in a criminal neighborhood, no matter what is on that place.
I'd gladly buy a Sydney harbor dump for double the price of a McMansion in the Sydney western Suburbs.
I don't even know why you bring this up it just makes you look silly, please at least do some homework before you say things like that. LAND values go up, not the value of the house. Your jones effect does not apply here.
The reason that a car is worth 5 to 15% after 10 years ( which  isn't true, try to buy an Aston Martin DB5 for 5% of it's original value, or another classic ) is that the value was originally made up by it's function. After 10-15 years it's a rustbucket and the function is gone and thus it's worthless. I'm amazed that I even have to explain this to you. It's called life expectancy of products. You buy a TV, and the average life expectancy is let's say 10 years, it means it's gone after 10 years, man.. I'm not even going to explain this to you, please go back to school for some basic economics.

In short : You're talking gibberish.
The Jones effect.. haha… good one I'll need to remember it

Ummester : The reason the RBA dropped by 100 basis points is that they don't want the resetting mortgages to cause a rally of foreclosures like in the USA. ( you remember , I told everyone on here a few months ago that from September 2008 until July 2009 mortgages would reset from their low interest rates of 6% to the 9% interest rates ).

The sad truth is that this rate cut doesn't even save 200$ for the average mortgage-owners money. In fact, they would have to drop the mortgage rates a whopping 4% (!!) in order to achieve this. The truth is that the RBA miserably tried to make the pain for the resetting mortgages a little bit less bad ( instead of going from 6% to 9%, the resets will reset from 6% to 8%, which is 400$ extra repayments per month ).

And that is the reason the RBA lowered the interest rates. In the meantime , the AUD is crashing and the inflation is rampant. RBA is in a whole lot of trouble but they have chosen the long way out instead of the short crash. Basically Australia is now guaranteed more pain in the long run.

Get your champagne bottles out guys ! Apparently we should be buying property again !
Soon your tenant will pay your interest repayments ( erh.. that's 50.000 ) from his 40.000 dollar wage.

oh.. wait… that's what happened in America. Oh no.. maybe leave your champagne bottles out for a year more and then see again before we all start cheering.

Australia's housing crash is going to be worse than America's crash. If you have a mortgage, chances are big you will go bankrupt. Your capital gains over the last 3 years are officially gone already, and the crash hasn't even happened.

Wakie wakie, back to reality now.

Thanks foundation. I guess your fundamental value of the 15k gross yielding asset would be closer to my property valuation of 250k than a property valuation of 570k.
Although, I think you won't even get close to 200k ( just a guess ). My valuation wasn't based on the 15k gross yielding. To expect to sell it for 570k in this market is just silly and ignorant. 

Stu macca,

read some of my other posts, especially the one about RBA having dropped the interest rates by 1% and the real reason to do this ( mortgage resets ). AUD has fallen 30% already over the past few months. It will drop more because of the interest rate drop. This is 30% less profit for mining. Also , commodity prices have crashed about the world. This is 20% less profit for mining. Also , recession is hitting, this is another 50% less profit for mining.
In other words, mining is passe. Get out while you still can. Mining is about to come to a grinding halt, and recession will replace it. Visit http://www.globalhousepricecrash.com – Australian property for all the info you requested.

Macnath : It is you that need medication for your nerves, not me.

Who said I was willing to pay 450 for it ? I am willing to pay today for it the REAL value of 250, which I posted earlier. So if she wants to sell for 250 I might be interested. She won't because she thinks it's worth more ( without knowing why.. probably the closest she gets is "erh.. because I bought it for blabla". ).

You need to be incredibly blind to NOT see unemployment going up in the near future. Even my dog knows that recession is coming. Have you been using the recessionblocker or are you just sticking your head into the sand ? ( http://www.recessionblocker.com/results.php?uri=www.news.com.au )

Wake up , there's a global market crisis which WILL affect Australia and which WILL cause a housing crash in Australia and which WILL cause massive unemployment. There's no doubt about it , just blind people choosing to put their heads in the sand and hope it all goes away.

We're talking DEPRESSION here, not recession. Just google 1930's depression to get a hint of what's coming your way.

The DotCom recession is PEANUTS compared to this HUGE MONSTER OF A DEPRESSION.
Please put that in your head, recession + depression is coming to your doorstep.

You will lose your job… so get out of debt before you are put on the streets.  If you need explanations on what a recession is , please google it.

Please let us know what you sold your house for ( if you can even sell it in this climate ).
My guess : You will put it on the market for 570 now..  In 4 months you will drop to 550, in 9 months you will be without a job and you will put the house on the market for 450, and in 15 months you will be bankrupt and the house is sold on Auction for it's real value of 250 ( and it will probably still keep declining for 5+ years )

Please keep me updated.

Sell if you still can. Put it up for sale for 450.000 ( you say you think you can sell it at 560.000 which is clearly not true market value ).  Take the loss and see this as an expensive lesson.

You were suckered into a property bubble that will keep declining for years to come. In the meantime you are losing capital on this house while getting nothing back. Your loss will be 100's of thousands of dollars which you could have SAVED and then bought a house cash now ( with the 15% rebate ).
When ( not if ) your husband loses his job ( yes, recession is coming, and mining will be affected most ) you will not have choices anymore, you will end up on the streets without a home.

This is reality, not the fairytale propertyinvesting.com website with amateur investors.
Get out, and stay out of property until prices dropped 50%.