"...kincella is talking about average prices of $ 850 000 for...

"...kincella is talking about average prices of $ 850 000 for inner melbourne and yet, we are talking houses in the sticks worth barely anything..."

And so is UT. $100 per week for a tiny room in the outersuburbs is a ripoff. Doubt anyone would pay that when they could rent a house with a couple of mates for half the rate.

That's where his calculation falls down. As you say rent is has always been @4% of the value of the house. 10% is pie in the sky.