moo----it might be your suburb,it might be inflated asset bubbled W.A, it might be mid to high end QLD,it might be the ritzy end of the market,but where i live it is still around 2004 prices,listings are hard to find and rental occupancy at all time highs and the vast majority is under 400k ,there is property under 200k so the area i live in must be fortunate, it fits the bill for one or two incomes-of course those with a plan and a substantial deposit and if their lucky the FHB grant.
so if you have your financial calculator you should see the immediate advantage to say a couple with savings of 140k the fhbg and a mortgage of say ,250k with a combined net income of 80k per year.
or better still with 60k + fhbg and a mortgage of 150k and net income >65k p.a.
thats what i call conviction, a plan ,and while you wait for a possible event i doubt it will affect the whole market.
of course it will always be better if we can do all that at half the cost,its just unlikely that will happen in the area i am familiar with.
leverage is more than just capital gain,capital gain is only a bonus if it allows an affordable level of leverage into market conditions,meanwhile back at the ranch if an equity build is cheaper than rent its a good deal,wether you live there or as an investment.
so you see it is always a good time to buy,but only for those with a realistic plan and goals,i dont know anyone with crystal balls providing a clear view of the future
