Baron1 thats just more propaganda from the Real Estate agent newspapers, better buy because things are getting dearer all the time, you might miss out :)
Rents wont sky rocket , yes they are out of pace with house prices but thats because house prices by any measurement you want to name have outpaced folks ability to pay for them.
so yeah your right you can get a 1m house with 100k down, imagine buying share like that , sounds a bit like Opes and Chris Murphy :), anyway its great if prices rise but when prices drop that person gets an investment return of minus 100% if the price drops 10%
still sounds a bit like Opes and Chris Murphy doesn't it
and allot of these folks are relying on both wages to pay for it, then along one day comes a recession and one of them loses their job and interest rates rise
then folks move and allocate their housing preference away from the expensive suburbs which lowers prices yet again as more folk do this across their market
all the while people tell themselves that the recovery is around the corner, they just have hold on (still sounds like Murphy), some of them start realizing they can live in the same house for about half as much rent as the mortgage payment
rents are what they are because they are roughly aligned to where they should be as a percentage of folks incomes
