wage growth slowest in 16 years, page-32

Acorn, it's a far more sophisticated argument, I suppose, but buying in run down areas in the inner city is a (long term) opportunity, simply because they will gentrify. The suburbs are increasinly losing their sources of employment; service jobs are based in the cities. Public transport is shite. Inner city life is much more interesting. It's as good as a certainty, and there's logic underpinning it.

There's no logic underpinning why house prices at 6x earnings can increase more than wages growth (which is going pretty slow - and likely will be for decades to come), in fact there's little logic to support them staying there. Once the Chinese get nervous, watch the fireworks go off. The four banks will no longer be 1/3 of the ASX, and maybe, just maybe, this country will learn a thing or two about capital allocation.

Of course, just my opinion (and that of any economist that doesn't work in the property sector). You're perfectly entitled to believe it'll keep humming along (and that the propertyless will have to resort to eating rice and beans).