Dalek, how is an affordability index based on average income in a region flawed when calculating whether a property is overvalued for that region?
As an investor, surely you look at data available to ascertain whether the investment is overvalued?
Roughly 75% of CBA's debt book is made up of residential property in Australia and is leveraged many times over. Any statistics the CBA produce to me is a conflict of index and it doesnt suprise me to see them fudge the figures to try and perpetuate the bubble even longer.
