"The renters are now quoting 60 minutes as their source of information, that would be extremely funny if it wasn't so sad."
wrong assumption. a lot of people who contribute to this thread are not renters and are interested in investment trends. I know I am one of them. But we all know where you are coming from though and we all know how desperate you are to try and lord it over everyone you come in contact with because that is the kind of bloke you are.
But there is nothing wrong with being like that Lord Elphus. There is room for all types in this world. You are entitled to your view.
But having said that Keen definately has a developed a very good agrument.
Indiscrimanate lending has definately given people more money to pay higher prices and a bubble in the housing sector.
in regard to affordability the average house price is about three times the average wage which is about $60,000
that means houses should be selling for about $180,000
at the moment the average is around $500,000
So a 50% drop seems to be on the cards.
I wonder with higher interest rates if there is anything that could stop people from selling their houses
I mean if there is no capital gain down the track and the interest rate is way above what you'd rent for why wouldn't you chuck the whole lot it
