The herd mentality is alive and well embedded in the psyche of Australian property investors. The climate for grazing on property has seldom been better but investors have joined the stampede in the other direction.

I've never understood why investors gallop into a market when it's peaking and stay away in droves when it's quiet. I've just been reading a report about Newcastle investors who jumped in and bought off-the-plan units at the peak of the cycle and are now losing money selling into a downturn. Will people never learn?

In Perth the number of properties listed for sale has trebled since the market went into decline. In Melbourne, properties listed for sale have increased 50% since the market went into a slump. Have property owners completely lost their marbles?

The wise investor buys when everyone is selling and sells when the masses are buying. One of the oldest and wisest of property maxims is that you make your money when you buy, not when you sell. The house I'm sitting in as I write this was purchased at a 20% discount on its asking price. Why? Because I bought at the bottom of the local cycle, not at the top which seems to be the favoured option for most investors.

People seek to invest in property because they want to grow their wealth. But no one ever got rich following the pack. The common characteristic of people who have achieved serious wealth is that they led the pack or they chose the opposite direction to the stampede.

For a detailed analysis of markets nationwide, click on the topics below...

What would you say is the biggest problem afflicting the property market? Affordability problems? Rising interest rates? The credit crunch?

It's none of the above.

I'm surprised so many commentators and journalists are attributing the market decline to interest rate rises, with that as the sole cause. It's simplistic analysis and bad reportage. There are other factors they're overlooking: the reversals in the sharemarket, previously spiralling endlessly upwards; soaring petrol prices, now at breathtaking levels; and big increases in supermarket bills.

The tipping point has been the cost of a visit to the petrol pump.

Australians have been living with rising interest rates for a long time. It's the additional factors that have changed the mood of public. It's affected the national psyche big time and caused a crisis of confidence. Nothing dampens the property market like waning confidence.

Households, for the most part, have adapted to higher loan costs. But a doubling in costs at the petrol pump and the supermarket have really hurt. And watching super savings go backwards in a volatile sharemarket has added to the collective neurosis.

There's been a welter of negative news in the media lately. Cynics would say journalists always spotlight the negatives but until quite recently the focus has been on positives, as media indulged the Kevin Rudd honeymoon with voters, the record numbers produced by the resources boom and the wealth being created in real estate. They highlighted the feel-good events of the first six months of the new Labor Government, including the 2020 summit, the ratification of Kyoto and high approval ratings.

Things have gone pear-shaped more recently. Two interest rate rises early in 2008 from a Reserve Bank board obsessed with inflation was at least one interest rate rise too many. The RBA board was impatient and got it wrong. The sharemarket faltered and fell. Every week brought more bad news about oil prices - just when we thought petrol couldn't get any pricier, it went up again. Media has been bashing us with bad news at a time when family budgets are straining from the escalating cost of paying the mortgage or the rent, filling up the car and stocking up on food and groceries.

It hasn't shown up in official statistics yet, because there's a 3-6 month time lag, but people have stopped spending. The first research to record the change is the survey of consumer confidence, which finds the nation mood is at its lowest since the early Nineties, a time of recession.

This has put a brake on property price rises. There's some evidence that values have dropped in some of the big cities. I think we can disregard recent headlines about a record slump, created by one research company's desire for a bit of free publicity. But there's been a marked impact on the property market, with borrowing for real estate purchases trending downwards for several months now.

I wrote a report called "Cheapies with Prospects" after multiple requests from investors who want to buy growth property but can't afford city prices. It opened my eyes to how much life there is beyond the capital cities.

So much of the national population is in the big cities and coastal towns, that many of us overlook the vibrant communities inland.

When we talk NSW real estate, people tend to think Sydney. If not Sydney, then Byron Bay or the Central Coast. Few consider Tamworth or Wagga Wagga or Orange.

The truth is, most investors would be better off in every respect if they forgot Sydney and looked to the regional areas. A cheaper buy-in price. Better rental returns. And higher capital growth.

Yes, higher capital growth. Many regional centres have double-digit growth averages over the past 10 years. Most of them have median house prices somewhere in the $200,000s and rental yields well above the city's.

And they haven't suffered from falling prices post-2003-04. Virtually every suburb of Sydney and most of the coastal towns saw values drop and many still have prices below their boom-time peaks. But in Tamworth, Muswellbrook, Gunnedah, Dubbo, Wagga Wagga, Parkes and many other regional centres, values have not only held up but have continued to rise steadily.

Melbourne's market has cooled after a busy 2007 and according to some analysts prices have dropped. But there are good places to buy beyond the state capital - places with more affordable prices, better returns and genuine prospects for capital growth.

Areas east of Melbourne stand out because there are big industrial projects happening and transport links to the City have been greatly improved by EastLink and the Pakenham Bypass - with more road upgrades in prospect. You can buy affordably in Traralgon, Morwell and Sale, get maybe a 6% income return and feel confident values will rise because there are so many mega-projects in the offing.

Further east, developers are swarming over the Gippsland Lakes region, buying land around Paynesville, Bairnsdale and Metung.

There are similar arguments to be made in all the states, with regional centres looking good as the capital city markets decline: Geraldton in Western Australia, Ceduna in South Australia, Charters Towers in Queensland. You could make a very long list.

For some, stepping outside the capital city is way beyond their comfort zone. But where's the comfort in a market that's shown no growth for five years (like Sydney) or has been going backwards for two years (like Perth).

Comfort, for me, resides in a place where I can afford the prices, I can get a decent rental return and there are identifiable reasons why prices will grow.

Adelaide, Perth and Brisbane are all proof that property markets often do things that underlying economics say shouldn't be happening.

The Adelaide story is that the state economy, hit hard by drought, was quite weak last year, growing by much less than the national average. Yet the property market boomed, with Adelaide recording close to the highest price growth among the capital cities.

More recently, the state economy has delivered stronger results. ANZ Bank economist Dr Alex Joiner says: "With the worst behind it, we are now seeing some positive signs of recovery, led by and reflected in a pick-up in building activity and strengthening performance in the housing sector."

But now the market is coming off the boil. The feedback from everywhere is that the Adelaide market has slowed in recent months. Once again, everyone is blaming interest rates. But, as the ANZ Housing Snapshot says, there has "a significant deterioration in affordability which, after being well below for many years, is now approaching the national average".

Sales are now steady rather than frenetic and it's taking everyone considerably longer to sell property. The Real Estate Institute of South Australia reports that Adelaide's median house price "stabilised" at $365,000 in the June quarter. It's symptomatic of the times that while this figure is 16% higher than a year ago, there was no price growth in the June quarter.

The July edition of The Month in Review from valuer Herron Todd White says: "Developers in the Adelaide area can still see blue sky ahead. Of those canvassed, all were keen to reinforce recent good sale prices achieved in the face of the gloomy picture being painted by selling agents and other market commentators.

"The sentiment is reservedly optimistic looking forward. All agree the market has come off measurably as a result of interest rate increases - however, most agree there is relief in sight later in 2008 or by mid-2009. Buyer activity is described as less frenzied than the last few years - but rather than having fallen into a hole, has reverted to the levels of 3-4 years ago when property sold at a more leisurely pace."

Longer-term (and we all should be thinking long-term rather than being captivated by the negative mood), prospects are good for Adelaide and South Australia. It's still the cheapest of the mainland capital cities, its economy is getting stronger and population growth is above normal SA levels, primarily because of strong overseas migration.

"It's expected that demand for housing will remain strong," says Joiner. "Rental vacancy rates will remain close to 1%, supporting further rental growth. Despite some moderation in price growth through the year, improving economic conditions and strong demand will put a floor under house prices."

We've learnt from the Perth experience that a buoyant state economy and high population growth doesn't necessarily add up to an endless property boom. Eventually it runs out of puff.

Brisbane has become the latest to decline, despite all the positive economic news.

Here's what the ANZ Housing Snapshot says about Queensland: "Fuelled by the ongoing commodity boom, the Queensland economy continues to fire on all cylinders. A sub-4% unemployment rate and employee compensation rates expanding by more than 10% a year over the past three years has allowed house prices to be bid up significantly. In 2007, Brisbane house prices increased the most of any capital city, to be 21.6% higher."

But the next sentence is the big kicker. "As a consequence," it says, "affordability has deteriorated significantly, to be roughly equal to Perth and second only to Sydney." In Perth the property boom eventually hit the affordability wall and that over-rode everything else. Now it's happened in Brisbane, combined with the national factors (sharemarket, petrol prices, interest rates, etc).

"Recent large price gains will moderate from recent peaks as higher interest rates act to cool the market," says ANZ (in another overly-simplistic but basically accurate observation). There's mounting evidence that the market has stagnated in South East Queensland and elsewhere.

Herron Todd White says in the July edition of The Month in Review: "Our sunny market outlook has greyed somewhat after recent rate rises. The mixed signals from commentators have put a large percentage of investors on the back foot.

"A portion of those in the know continue to sing the South East Queensland song of praise, hitching their star to our increasing population and seemingly boundless potential. But other equally wizened souls note we are getting a bit big for our boots. Buyers do not have bottomless pockets and the market is due to check itself.

"The confusion has also been noted by agents who are seeing different sectors performing at different speeds, with no clear-cut idea of how it will all pan out."

I think that's a good summary. Those who speak of population and economic growth are either clutching at straws or don't understand market dynamics. Population growth does not, in itself, create a boom real estate market. There are other factors. And, as Perth and WA have discovered, a booming economy with a fast-rising population can be over-ridden by other factors, such as affordability and a decline in public sentiment.

HTW says: "Smoke signals from the development community are of note to market insiders. It appears that developers have flipped from their aggressive buyer stance. Some were speculating that by the time their end product hits the market, the capital growth they had made over the construction period would ensure their product's viability. That sort of confidence has waned and there are rumblings that quite a few are now cutting back on their acquisitions."
But it notes that the prestige market is still firing. "Developers are seeing plenty of money in the sector, as many of these buyers appear immune to the credit crunch. The price record for a unit was broken recently, with over $14 million paid off-the-plan for a penthouse in a Newstead riverfront project."

The Gold Coast market has slowed also in recent months, with agents reporting subdued levels of inquiry. Some agents suggest a 10% drop in values which, HTW says, would pretty much cancel out gains achieved in 2007. "It's difficult to ascertain the extent of the slowdown in the second-hand market, with the reduced turnover of sales. A good indicator of the slowdown is the performance of new unit complexes, townhouses and house & land packages. Agents have reported a significant drop in buyer inquiry. Rates of sale have fallen. Developers are now offering incentives to prop up the fall in sales. These may come in the form of stamp duty concessions, rental guarantees, cash-back on early settlement, furniture packages and even a marina berth."

Buyers need to be wary of these kinds of offers. Rental guarantees, for example, are a trap and often worthless. Developers are trying to create the semblance of units holding their values, when in fact they can't sell them without a price cut or the equivalent in other benefits. A smart investor will simply insist on a lower purchase price or walk away. HTW in The Month in Review compares some of these offers to the marketeering techniques which create a two-tier market in the past. These next few words need to placed in capitals: BUYER BEWARE.

HTW also has some warnings on the Sunshine Coast market. "The owner-occupier market has, by and large, held ground, albeit on reduced turnovers. The investment product is another story.

"As economic pressures continue to be felt through interest rate increases, fuel price rises, etc, we usually see a fall in discretionary spending. This has been evident in both the retail and automotive sectors. It's also being felt in the investment property sector. It's an easy decision not to buy when there is no sure capital gain on the horizon."

HTW says this is being felt most in the apartment market and warns that developers are returning to "extraordinary marketing techniques" to sell product at inflated prices to non-locals. Again we say: BUYER BEWARE.

Even boom markets like Gladstone and Townsville have slowed. It seems everywhere is caught up in the current crisis in confidence. In Townsville developers are "feeling the pinch" from reduced demand, rising construction costs and increased supply.

While values have declined in many cities, Canberra has resisted the trend to date, according to RP Data. It says the market has flattened but dwelling values have managed a small rise in the first five months of 2008.

It is, however, a market that has peaked after several years of good performance and we can expect little growth for a while.

The July edition of The Month in Review from valuer Herron Todd White classifies the Canberra market as being at its peak. It says the volume of housing sales is falling and the rental market is "balanced", unlike most capital city rental markets which are described as having a "severe shortage".

There is still strong demand for new apartments, according to HTW, although the volume of units sales has fallen.

It says the New Acton precinct is performing strongly. The precinct is a mixed-use high-rise development area in the CBD beside the Australian National University complex. Apartments have a prime location and views of the lake. One-bedroom apartments start at $500,000 and a penthouse achieved a record $4.5 million. Over half the units in Tower 2 sold before release, with mostly corporate or government buyers securing property as temporary accommodation for staff.

"Buyers will pay a premium for good quality design and facilities - and given the limited availability of development sites in the CBD, the developers have catered for this high-end product," says HTW.

The ANZ Housing Snapshot notes that the ACT economy was strong last year but is now in the midst of a slowdown. This is despite population growth not seen in the ACT since the early Nineties. "With most new entrants taking up positions in the public sector, the unemployment rate is particularly low at 2.4%. The tightness of the labour market is also reflected in wages, with compensation of employees expanding 11% last year.

"ACT housing remains some of the most affordable in the country due to relatively high public sector incomes. Vacancy rates remain below historic averages and advertised rents grew 13% last year, to be the second highest in the country after Sydney."

But it says slower economic growth and the prospect of cutbacks in Federal Government departments are limiting the previously rapid rise in population and may see an easing of housing market pressures in the second half of 2008.

I've been criticised for my assessment of the Darwin market over the past year or so. I've suggested the Territory market boom is over, an opinion supported by research data from a variety of sources.

I've gone as far as listing parts of Darwin as No Go Zones for investors. The response has been mostly personal abuse, which is fine by me because my only fear is that someone will produce some cold facts to prove me wrong. To date, no one has.

But, in this edition of the Quarterly Report, I'm going to say nothing about the Darwin market. I'll leave it others, whose views I report without comment.

Herron Todd White, July edition of The Month in Review: "Darwin's residential property market is going through some rocky times. In the past 12 months Darwin has seen its residential market come right off the boil, following numerous years of double-digit growth. We are now witnessing static prices with longer selling periods and purchasers having a stronger hand in negotiations. The same effect is occurring for developers, whose margins are being squeezed, making some projects less viable or simply not worth the commitment.

"Since 2003, there have been an ever-increasing number of residential units being constructed in the Darwin CBD, with reports at one point suggesting more cranes dotted Darwin's skyline than Sydney's. Since 2007, we have witnessed many developers scrapping unit developments or adapting to changing demand by switching to commercial. This is indicative of the general trend in Darwin developments, where commercial or tourist accommodation still has good demand while residential demand takes a breather."

The ANZ Housing Snapshot, April 2008: "House price growth slowed from an annual rate of 23% in June 2006 to a still-solid 11% growth in December 2007. Housing finance commitments have slowed significantly under interest rate pressure, which may take some pressure off the market and see recent rapid price growth continue to moderate."

Australian Bureau of Statistics House Price Indexes, March quarter: "The price index for established houses fell 1.3% in Darwin in the March quarter. Over the year to March, the price index for Darwin was up 4.9%, the second lowest growth among the eight capital cities.

The Real Estate Institute of Northern Territory,  Real Estate Local Market Analysis for the March quarter: "Sales figures recorded significant decreases in all areas in the NT in the March quarter. Over the last 12 months Alice Springs was the only area to record an increase in record sales. All other areas showed a significant decrease, with inner Darwin recording a significant drop in sales of 62% … Unit sales in the NT have also significantly reduced over the quarter, with all areas recording double-digit decreases."

The Northern Territory News: "Territory property values faltered in June. Property analyst Residex has released house and unit price figures showing nearly every city in Australia lost value. And Residex warns the Northern Territory will not be immune to the tough times ahead. 'The Territory's no different to the rest of Australia,' it says. The statistics said Territory median prices fell 0.52% in June to $375,000, while median unit prices fell by the same percentage to $295,000."

If you read back through past editions of the Quarterly Report, you'll note that the Hobart market usually does what the fundamentals suggest should not be happening. Its market has advanced steadily during times when its economy has provided opposite signals.

Hobart is nothing if not consistent (in its contrariness). Now we have stronger economic fundamentals in place but house prices are going backwards.

The ANZ Housing Snapshot reports signs that the Tasmanian economy is now beginning to strengthen. Housing consumption (up 6%) and dwelling investment growth (up 11%) were particularly strong in 2007 and the unemployment rate was stable, at just under 5%.

"All these factors point to increased activity in the housing market, especially now that losses from inter-state migration have been stemmed," ANZ says. "Population growth has been running at just below 1% per year for some time and we expect this trend to continue, with an increasing number of retirees choosing to settle in Tasmania."

It also notes that building approvals recently have been running at rates not seen since the mid-Nineties. "However, as with the mainland states, interest rates and other constraints have kept the cautious building industry from fully meeting new demand. In the short-term we expect market fundamentals to continue to tighten."

So, logically, you would expect property prices to show some growth. Not in Hobart. In the March Quarter, according to the ABS House Price Indexes, Hobart house prices fell 1%. In the June Quarter, according to research from Residex, Hobart recorded the biggest fall in housing prices of any metropolitan market in the nation. Its house prices dropped 2.2% and unit prices fell 2%.

Values are still 11% or 12% higher than a year earlier, but the new trend is for contracting property prices.

There's even more uncertainty in Tasmania than elsewhere in the nation. On top of all the pervading gloom about interest rates and petrol prices, Tasmania's Premier has resigned and there's ongoing uncertainty about the biggest project on the economic horizon, the $2 billion Gunns pulp mill.

So perhaps the contraction in prices does make some sense after all - not in terms of fundamentals, but in terms of real estate's greatest influence, confidence (or lack of it).

Melbourne's market has declined of late. How much depends on whose figures you believe. According to RP Data, Melbourne prices fell around 2% in the three months to May.

The July edition of The Month in Review from valuer Herron Todd White says: "There has been a dampening of the Melbourne residential market, with most indicators showing falling sales, longer sale times and flattening prices. Auction clearance rates are down 20% to 30% on the same time last year, even though the number of properties up for auction has decreased."

HTW says Melbourne is at the point of tipping from the "peak of market" phase to the "declining market" phase. Sales of both houses and units are declining, but there remains a severe shortage of rental properties, with vacancies "tightening sharply".

The downturn is a recent event. Up to the first quarter of the year, Melbourne and Victoria were travelling well. The ABS House Price Indexes have Melbourne house prices rising 4% in the March Quarter.

"In contrast to Sydney, Victoria has been one of the non-resource states where the housing market has remained buoyant, despite some softness in the local economy," ANZ Bank economist Dr Alex Joiner says. "The strong activity in the market has kept the number of building approvals elevated, despite interest rate rises. But even this has not been enough to meet burgeoning demand. Victoria has been able to keep losses from interstate migration to a minimum, whjile overseas migration has been strong. Melbourne was the fastest-growing capital city in the country last year, adding 61,700 residents. Such demand saw house prices accelerate, increasing 18% in 2007.

"Solid demand has seen vacancy rates plummet, now reported at below 1%. In such a tight market, this foreshadows a continuation of what has been phenomenal growth in advertised rents - up 23.6% in 2007 - for some time to come. Higher interest rates may slow the Victoria economy and activity in the housing market, yet strong demand should keep prices well supported."

The Herald Sun which reports that Melbourne's rental market is the tightest it's been for many years. "This is a landlords' market with tenants bidding to rent properties and open-for-inspections crowded with potential applicants," says the newspaper. "As sharemarkets become more volatile, property investment is increasing as an alternative. Although there is strong and growing demand for rental housing by tenants, there are not enough investors in the market.

"So, it could be the right time to invest in residential real estate, with the aim of becoming a landlord."

Perth, like Adelaide and Brisbane, is behaving irrationally in terms of economic factors. The main economic indicators for Western Australia, like gross state product and state income, are producing extraordinary growth numbers unmatched by any other state or territory.

But, as the ANZ Housing Snapshot notes: "Despite this stellar performance, the housing market has run out of steam. This is unsurprising after Perth house price growth peaked at 47.5% in September 2006. Since then price growth has virtually stopped, capped by the significant deterioration of affordability."

This again reinforces the message that affordability issues eventually over-rides everything else. It's starting to happen now also in Queensland.

Herron Todd White says in the July edition of The Month in Review: "Perth is currently experiencing the most severe downturn in market activity in recent history. The downturn is taking effect across all value ranges from the bottom end of the market to the very top.

"One section of the market that continues to have a relatively good turnover is the entry level vacant land sector. Lots in this price range are being purchased by first-home buyers. This appears to be the cheapest way into the Perth market at the moment.

"As activity in the market has softened, the vacant land sector was the first to show signs of adjusting prices and adapting to the new market conditions. The first offerings to the market included offers to pay the stamp duty and minor rebates on purchases prices. This has since evolved into larger rebates, offers of electrical goods and fit-out packages inside and outside the homes - and even cars.

"The second area of the market where we have seen a large change is in the inner-city and near-city apartment market. The Peninsular project at Burswood has been a resounding success with the fifth residential tower now being built. The market in which this tower is being built is, however, substantially different to the first four towers. Previously, buyers competed to buy off-the-plan. Today there is much less urgency and Mirvac will find selling these units more difficult.

"Elsewhere it appears most developers are reassessing their options due to the credit crunch and the dramatic softening of demand. This may result is some development plans being pulled from the market or converted to commercial projects."

So, is there any good news on WA property? Yes, if you're an investor the trend with vacancies and rents is good. "Lack of adequate rental supply has seen rents skyrocket, with increases in advertised rents in excess of 18% in 2007. With another upswing in bulk commodity prices expected to deliver significant economic benefits to WA, higher incomes will see pressure on prices to build as supply continues to tighten."

There are also locations outside Perth where prices are still rising and have good prospects. Geraldton stands out for me and mining-related towns like Boddington and Kambalda are also worth considering if you're a bit of a risk-taker.

There seems general agreement that Sydney property values have fallen this year. The ABS House Price Indexes recorded a 1.5% decline in the March Quarter. RP Data says Sydney values are down about 1% for house and 1.5% for units in the first five months of the year. Residex says the median house price for Sydney fell 1.8% in the June Quarter.

This follows the more positive outcomes of 2007. "NSW economic and housing market performance probably suffered most as a result of the two-speed economy prompted by the commodity boom and higher interest rates in recent years," says ANZ economist Dr Alex Joiner. "However, after a period in the doldrums recent data suggests that the NSW economy is showing signs of life. Consumers have led the way with an upswing in retail sales growth, among the strongest in the nation.

"This improvement in sentiment has been positive for the housing market. Sydney's median house price rose 8% in 2007. However, growth has been patchy with relatively soft prices in the west, contrasting with stronger rises in the inner and eastern suburbs."

Joiner says an upswing in building approvals (from a very low base) has not been enough to stem the growing imbalance in the housing market, which has reached a shortage of 50,000 dwellings (the most pronounced imbalance in the nation).

"As a result, affordability remains difficult and continues to drive high levels of interstate migration. The exodus to other states is being more than offset by overseas migration, which is adding to physical demand for property. The continued strength of demand has seen the vacancy rate fall to a historic low of 0.8% in March, pointing to sustained high rental growth. Advertised rents increased 21.6% last year."

So, not bad prospects for intending investor buyers. The ability to buy well and get strong rents.

There are good pickings in NSW outside Sydney. The north-eastern corner of the state has population growth, lots of new development and a boost from the completion of the Tugun Bypass, as well as ongoing improvements to the Pacific Highway.

Some of the inland regional centres have good prospects, including Inverell, Moree, Gunnedah and Parkes. They offer affordable real estate, good rental returns and identifiable reasons for values to grow. Watch some of these places take off when they build the inland rail link.

While some centres outside Sydney are doing okay, Newcastle isn't one of them. The July edition of The Month in Review from valuer Herron Todd White classifies Newcastle as a declining market. There's a particular warning on the apartment market. HTW says demand for new units is "very soft" and the volume of sales is declining significantly. Poor investor sentiment is causing lengthy selling times and limited take-up of new units in the market. 

"There are numerous units currently on the market within completed developments and new off-the-plan units in projects under construction," HTW says. "There are also many disgruntled investors who speculated on capital growth from off-the-plan purchases before the recent market contraction, which has seen a high percentage of recently-sold units being placed back on the market for re-sale at a discounted price.

"This additional supply provides tough competition for the new projects currently under construction, which are heavily-reliant on obtaining off-the-plan sales."

This time three months ago I suggested investors overlook the negative sentiments that were emerging and benefit from counter-cyclical investment. I believe that even more strongly now.

I'm actively seeking to buy investment property and there are plenty who think I'm foolish to be acting in such a negative climate. The same people, three years from now, will be telling me how lucky I was to buy back in 2008.

I know this because it's happened in the past. The overall economic and market climate was very similar less than three years ago, late in 2005. Apart from Perth, most of the capital cities had very flat markets then and there were very few buyers. Happy now are those who did buy then in cities like Melbourne, Adelaide or Brisbane, because values have leapt since 2005.

The key thing property investors need to keep in mind, always, is this: The present is irrelevant, it's the future that matters.