i am predicting resi property price increases, page-34

I don't think you guys understand.

Where on earth are your 3:1 and 4:1 ratios coming from.

Banks just will not lend if you do not meet their criteria.

Your ratios are based on house prices.

Not the average loan amounts !!! now at $280k


Sure you get some dills buying their first home for $700k with a 5% deposit. But the bank will just not lend that much if their debt payments are above 33% of their gross income.


Anyway, that 33% was set back in the 30's and is being applied to investors also.


With all the depreciations, negative gearing etc, etc,

47% is more appropriate for investors.(not for an owner occupier)


House prices 8-10k's around a CBD are highly sought after and should not be compared for first home buyers serviceability. There is only a limited supply so people that have been in the market for a while and have money can afford to put down more deposits and borrow less than a first home buyer for something that they want. If first home buyers are waiting for the crash so they can buy their home next door to where they work, keep on dreaming. Go and invest in a new housing estate, wait some years for some growth, buy another investment property and replicate, then move up the food chain.

This generation wants everything today and NOW.