That would mean they will lose probably another 10% of their capital. Currently the Australian banks excluding MacBank are down from their peaks by something between about 22 - 28% and going lower by the looks of it. As I see it the only thing that shares have over property is shares are a lot more liquid than property could ever be. I think selling property in the next couple of years will be very difficult unless the seller accepts a 20 to 30% loss. I dont see property as a viable investment over the next few years. If it comes to that I dont see shares doing very well either.
