"Wages have to breakout soon or the next generation are going to be stuck renting for ever."
Or there will be an enormous property crash. As a contrarian I favour this, but I don't know when. The last year has shown that governments will do anything to keep the property market afloat, including FHOG and very low interest tates.
Few commentators have said that Australia has a gigantic property bubble. Whilst ever prices keep rising there is no bubble to worry about. The fact that housing prices have been rising so fast for so long doesn't prove that prices won't fall, rather in my view make it much more likely to happen. All we need is another tightening of credit, rising interest rates and a severe recession to set off the crash.
