Have I devised a clever investing technique?

Your plan is the same one as the following :
Al Capone asks you to run some money for him to his business partner. Instead of going to the business partner , you decide to go to the roulette and put everything on 1 color. If you lose, you're in problems, if you win , you're rich.

Ask yourself if the above plan makes sense to you. If it does, then I say go for it. If you even remotely have a braincell or two though, I'd say stay off the drugs and start working instead of coming up with scams like these.

You still don't get it do you ? … This is the whole problem.
Speculation is what pushed prices up to unrealistically high levels, unsustainably high levels. The high houseprices of today are the result of speculation that the houseprices will rise by more than 10% p.a.
Houseprices in turn DO rise because everyone in the Ponzi scheme wants a share in the seemingly unlimited cashmaking machine called Real Estate investing.
Well, this is the whole point, the cash machine has run dry. We have seen it in USA, we have seen it in Ireland, we have seen it in UK. All these markets were overpriced due to speculation. In Australia, the land where houseprices are the MOST overpriced of all countries, is at the moment starting to drop. We have seen drops of 10-20% ( 10… to 20 … PERCENT !! remember this well ) and we will see falls of 50-70% in some area's. In the luckiest area's the drops might be limited to 30% or 40%, but price drops are coming.

Now I will explain YOU something, Mr. Blind man.
Why do you think that houseprices have been allowed to go up ? It's the amount of money that lenders want to borrow you which make up the houseprices. We're looking at 30-40 years mortgage already. But that's not the frightening part. The frightening part is that the amounts of money involved are at a staggering 8-9 times annual wages !!! This, in all perspectives is crazy. People aren't able to spend ALL of their wages on paying back interest at 10% can they ? No of course they can't they need food, water, electricity, cars and petrol to drive to work, they need at least 40% of their wages to LIVE and FEED themselves.
In the past times, this was no problem, since houseprices went up ( due to speculation mind you ) and they would use equity to pay for most of their lifestyles. This has come to a sharp HALT. No more equity , no more free money. Houseprices have gone down. People now use credit cards and other credit to pay for their lifestyles instead of their house-annex-ATM.

Give my story a good read. Think about it. Then remember that the NORMAL house prices are 3-4 times your annual wages : ie : 150.000 – 200.000 average houseprices. NOT 450.000 average houseprices.

450.000 -> 200.000 is more than 50% drop.

And that , my friend, is what I call a reality check. Don't come up with "people have made money on it in the past", you are fooling yourself Mr Blind man. Use your brains, use your intellect, and you will see for yourself the truth in what I say. It's a big Ponzi Scheme, it's a pyramid-game in which the people who jump in last will be the ones that get burnt. And they will get burnt for amounts of money they cannot possibly pay back in YEARS to come… Believe me, it's already happening.

Hi Ozboy, while Scamp has used some rather rude words to describe your 'plan', for once he's right.

Noticed that our property market is already very cautious all of a sudden? While prices haven't significantly dropped where I'm at, the slowing was dramatic, as in a very very hot market in December 07 and then in January, auctions were depressing.

Flipping relies on the prices moving up very fast by a margin of more than 10%. When you tack on costs, you need to have $60000 increase in price for your $500000 house. It's a very easy way to lose your shirt and more.

Shares are not speculative. Don't treat them as such. 

You're already doing well with renos & small gains. Maybe some patience is needed.

Scamp, 'average' house prices aren't 3-4% of annual income. I was earning $13000 p.a. and houses were $100000 + in the capital city. I bought one @ $166200, my 1st house. That's 13 times my income. But you're right. Got me into tremendous stress. Still kept it for 11 years & sold it for $310000.

KY

Oh back onto the topic, stamp duty would be payable in NSW as well

Scamp said, 'People like me who have seen house-prices crash, are more cautious. '

Instead of making statements like the one above, how about you attempt to give dates and by how much that they CRASHED and did they ever recover.   Perhaps then your comments may have some significance.

It's not that I am disagreeing with your comment, although I feel that crash is perhaps a little harsh and correction would be more to the point.  I began in property sales in 1977 and have been witness to only 4 corrections during this period, and at all times those people who were able to weather the storm came out the other end a lot better off.   Sure those people who over committed faced a loss but this result is not peculiar to property alone.   If you gamble the weeks wages on the pokies and have nothing left to live on, whose fault is it?   Don't spend or commit more than you can afford.

Can we all vote someone of this website because if so i know of a great candidate!