I don't think houses will ever go up in value in our life time.I...

I don't think houses will ever go up in value in our life time.
I have a girlfriend in Switzerland she says homes are so expensive in Europe that most people never think about owning a house. No body buys them so there is no capital gain so they never go up in value.
For the average European owning a home just doesn't enter their consciousness. They are happy to rent for ever. It is normal.
The houses rarely go up in value, no body wants them and the rents seem to stay the same as well ( which is interesting)
I wonder if the government regulates rents?
So nothing happens. Owning a house is like opening an account in a bank and getting interest except instead of interest it is called rent.
I think the same thing will happen here in Australia.
Just read this article

http://www.smh.com.au/news/national/its-bye-buyers-as-market-is-rent-by-generation-x/2007/01/26/1169788693359.html

Already generation X are starting to adopt a renting mind set it appears and good on em, I say.

if there is no capital gain in aussi houses then it is really just a question of whether you rent or pay interest to a bank.
Which ever is cheaper.
At the moment I think it is cheaper to rent and I think woth house at 8 times the yearly salary it will always be cheaper to rent.