firstly , you never own your house .your house is a liability not an assett...why? you have to maintain it , repair it , renovate it etc you have to pay council rates , land tax , water and sewerage,insurance , etc you may have problems with your council and/or next door neighbours or state govt depts to rectify If you have a bank loan of 90% on the property , its a liability to them not you , if you default they have to look after it etc , they are taking the 90% risk , you are taking the 10% risk plus any upside in house values. The truth known , its better to rent than buy , you dont have to maintain the property etc and if a sewerage works moves next door or a transport company etc , you throw back the keys and walk when your tenure is over and go to greener pastures. get a spreadsheet and work it out , look at the schiller index of house prices and house prices from the dark ages to present have gone no-where cpi speaking , smooth out the peaks and troughs. yep.I am an idiot I bought houses BUT I rent some and I put the bank at risk to 90% , I get the capital gains......
The RBA are wooden heads , the Westpac bank gazzump them by raising rates before they did , it put them off balance like headless chooks , left them with their willies in their hands , they are no match for grandma Gail Kelly.
