that their wealth is as safe as houses when it's invested in direct

property – and many are relying on it as a means of funding retirement.

But property prices are more volatile than most people think – even

within the same postcode, insist researchers from the Australian School

of Business. A new model that takes in factors not normally considered

in indices shows substantial discrepancies in the growth rates of house

prices. Seasonal effects and a range of variables including interest and

unemployment rates, equity prices and housing stock may cause market

values to plummet or soar.