A similar question to that asked by OP was asked on David McWilliams webchat today. [broken link removed]
I don't really get what DMcW is saying . Maybe someone could elaborate?
ChrisA: Just sold in May before things started softening. 500K in the bank earning 4.5% ... if your advice is to hold tough, what to do with the proceeds??!
David: Hi Chris. I have always been a believer in investing in real businesses that buy and sell real stuff to each other for profit, rather than businesses that are looking for a speculative windfall. There are many hundreds of companies that because the banks will only give loans based on security of property are actually cash starved at the moment. Typically, these types of companies will give you better value for your cash and normally have great resale value in the years ahead.