Im afraid P77 your handle on the uk interest rate, and housing market is less than impressive.
UK base rate is 5% meaning people pay retail aroun 6.5/7% on a mortgage, this is the same as here about a year to two years ago. Your comment saying its 2-4% is like saying the interest rate here is 5-10% in relative proportions i.e. less than informative.
House price affordability in the uk is far more stretched than here which is why they are heading for a fall. Aussies have had it good for a long time and now they are catching up with the rest of the world.
In terms of my view of whether property here will fall, property is just like shares in that as well as interest rates the prices are a function of two things 1) long term supply vs demand driven value, and 2) swings in consumer sentiment.
I belive its an undenable fact that for the long term trend supply versus demand will keep pushing prices in the major cities higher over 10 - 15 years of further sustained growth (particularly inner city suburbs close to public transport) BUT that ALSO....
...hey will bomb in the next 6-12 months in the same way as they dramatically rose last year as 1) mortagge approvals have fallen of hence there is less money to buy = fall off in short term demand, and 2) every shits their pants and decides to sell sell sell panic panic panic.
being this is the case your hypothosis that you can get a house cheaper in 12 months than now is true.
