The long term median house price is 4.5 times the median household income. There have been periods in Australia's history when house prices have been above 4.5 times the median household income (now), there have also been numerous occasions in our history when house prices have been below 4.5 times the median house hold income. On every occasion when the median house price was above the long term median, sooner or later it has comes down to fall below long term average, that is the time to buy. That time is not now. Right now median house prices are 30% above the long term trend and 30% above median HOUSEHOLD income. On top of that, HOUSEHOLD debt is above average for 'other' loans is also high. How long it takes is anyone's guess but history has shown, it can take 5-10 years before a post housing bubble reaches it's bottom.
I feel sorry for this young bloke the many newies just trying to get a place to live. I am sure he/they will get back on their feet later in life having learnt the hard way. His young he has ample time to recover.
But i don't feel sorry to the landlords and the greedy who have started land banking and speculating in the past few years. I have had landlords talk down to me I can assure you. Every IR rise was an excuse for payday rent increase for the landlord. Yet when IR's dropped, rent never dropped. So I am not bitter but a house downturn is a crash we have to have in this country, to wipe the smugness offa the faces of the growing amount of greedy people in this country and to ensure a better standard of living for all Australian's, not just the top 10%.
