[FooHentai]

I was gonna say similar, and fall back on the old 'Market can remain irrational longer than you can remain solvent' trope :)

If you really want a safe(r) hedge in this situation, one option is to buy the cheapest property you can live with. That way:

- You're off the rental ladder - Are building up an asset with mortgage payments - Are in as shallow as possible if an event occurs that puts your ability to service the morgage in jeopardy - Are out less if you do lose the property - Can make a jump to a more expensive/nicer property in due time if market conditions allow - BUT potentially miss out on capital gains/leverage as a lower cost property will increase, in real terms, less value if property prices rise.

If you're risk averse (I am) it weighs up as a good option. But you miss out on significant potential rewards (not living in as nice a place, not reaping as much capital gains, longer commute or lower wages in the area). Such is gambling.