I did quote the reports regarding households of "middle wealth". i.e. they're the median wealth households and their assets are at about $462K in assets. i.e. the median property prices being $800K, those on median wealth aren't going to be buying them if we go by your insight about median wealth buying media property.
Most people build wealth through owning a property. Not that property make them rich, just that a home is most people's largest assets, it's their largest savings and assets.
So for people to get into that "middle class", they do so slowly... by working, earning some pay, get a mortgage and start paying it off progressively over their lifetime.
I really don't know of any situation where those of median wealth [i.e. asset], go out to buy median priced property. I mean, it doesn't sound right that for people to afford a house they have to have that equivalent in assets parked elsewhere. Most who takes out a $1M mortgage don't have the equivalent $1M in gold, silver, stocks and bonds... do they? Some do, for sure, that's not the average or the median among any state population.
It's going to be a scary situation when people can't repay the mortgages on their multiple properties.
Unless the gov't decide then to bail the private homeowners or small time investors out... and chances are very unlikely that they'd do that. That kind of welfare are only reserved for the upper crust. For the population it's tough love and free market baby.
So if the laws and regulation are to stand as they currently are, then the property "correct" a bit, or an illness or an economic recession mean no possibility to meet the repayment. I'm not too sure how people would cope working day and night to pay off a debt on properties that's been flogged off by the bankers.
I mean I purchased stocks just to then watch it collapsed by many, many, too many per cents. It's not a nice feeling. But at least I console myself with the fact that it hasn't totally collapsed, that the market is wrong, that I'm a long term investor. For property investor where the asset has been repossessed but the outstanding debt is still on their book... not going to be pretty.
Again, not saying these to wish ill on investors. Just maybe there are things to consider or think about that the agent and the banker forgot to tell you.
