australian home prices world s most overpriced, page-28

Hi helium,

What you've done there is to take the number of years rent you get free from the difference between the current and 'fair value'.

Then you've assumed that time is the time you'd have to wait for the market to correct. Of course you end up with zero sum in that case because your modelling guarantees it no matter what figures you plug in.

In practice a would be homeowner may not have to wait 10 years especially if there are many distressed sellers. That is why the wait case is not zero sum at best.