"I just feel that we, as educated Australians, are pushing low and average income earners into buying a house in the belief that they will make money out of it. This is as irresponsible as putting them into grapevine plantations at the moment. A negative equity situation for a vast proportion of Australians will prove to have long term detimental effects"
If a vast proportion of Australians enter the property market at inflated prices (and take-out large mortgages) this will require another vast majority of Australians to be *sellers* of the aforementioned property.
This leads to the the following mathematical inconsistency :
(Number of property buyers) + (number of property sellers) > (population of Australia)
