Hi MS
Affordability --- In the Australian property market there is only one driver and that is public confidence ( from my experience)
If people are confidant that prices will always increase, they will sell stuff, borrow from relies, increase their mortgage requirements ie do anything to get a house
But with the average mortgage in NSW just over $800k requiring payments of just over $1000 per week there is not much leeway for more increases IMHO
In theory an income of $3000 per week would be needed to meet bank requirements, but the average wage in NSW is only $2000 per week
Consequently although prices are still rising ( not in Melb) the margin for disaster is getting finer
The big kicker is always the excessively high migration rate which neither party will touch with a barge pole, ask yourself why,
we have basically no industry,
most workers are either in a service industry (* 78%)
or the government
so why do we need them ??
