The demand has already outstripped supply of house and land package deals around S.E. Queensland. Subdivisions are being presold a year ahead. This is where a $550,000 package goes to $690,00 very quickly and still have loan payments lower than rent!!!
If you cannot buy a new home (and get the government grant) the next alternative is to get into existing property. The leveller is rent : repayment ratio. If rents increase that only argivates all of this. If investors, seeking yield, flood into the market and home owner buyers compete it's a dog chasing it's tail.
The RBA must keep bond yields down through QE and the government is financing a ~$200 billion deficit. It's going to take some time for this to settle. The aftermath will be market bubbles everywhere. This could continue longer than we think.
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The demand has already outstripped supply of house and land...
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