I think you really do have to take a long term view on property, the people who are getting their fingers burned are those who couldn't really afford the investment in the first place and extended themselves beyond what is sensible. A little history - I bought my first house in Dublin in for 10,495 pounds in 1975, they now sell for 595,000 euro. My second for 41,500 pounds in 1987, it's now worth 1.2 million. I bought a house in Spain in 1999 for 53,000 pounds it's now worth 220.000 euro. I part own a house bought for 1999 for 120,000 pounds now worth 425,000 euro. As you can see from the above, all have been good investments in that they certainly exceed inflation figures and what could be obtained by depositing that amount in a bank. Just how good an investment they are depends on where they are and how desirable a house type they are. I now intend to buy in Orlando, Florida where it is possible to buy a 4 bedroom, 3 bathroom house with a private pool for approx 210,000 euro. The same house would have sold for 350,000 euros 18 months ago, the only reason that this investment makes sense is because I do not need a mortgage. For a cash buyer it's a steal but it is not a good investment for anyone who needs a mortgage. Caveat emptor!