And...for those who cannot "read" the above painting...
"As a result of lower house prices and therefore lower loan sizes, somewhat lower interest rates and a good deal of income growth, the repayment on a new loan on a median-priced house as a share of average income is now at its lowest for a decade (except for the ‘emergency’ interest rate period in 2009)."
So...if the "bubble" brigade are to be believed, property prices are going to "collapse" and become cheaper again...aided even further by an inevitible fall in interests rates that will follow, adding even further to the "affordability" scale.
So, how does this sound...
"...the repayment on a new loan on a median-priced house as a share of average income is now at its lowest...for a century".
This is what the bubble brigade needs to happen to be proven right.
Is Australia comparable to a century ago?
lol
Get a grip people...more and more suburbs are making it onto the break-even list...that is, where rental returns effectively cover the mortgage for the landlord.
And this is without the cash-back benefits of negative gearing and/or depreciation.
The above references were from the following link;
