as a home buyer/owner/investor..property values only affect you...

as a home buyer/owner/investor..property values only affect you in certain circumstances...

if you have to borrow money..the price reflects repayments(as well as interest rates)

if u use the equity as a piggy bank.(the more its worth the more u can spend}

if u are selling..it will reflect what u will end up with in your hand,

if the price rises it advantages one group,owners/investors....if it goes down it advantages another group...prospective buyers, renters etc..


My opinion relative to income and wages growth in australia is we are still at the top end of the band of property pricing...any more rba rises and a lot of pain will be felt..

remember if rates were 15% and it went up 1% you had to find about 6% more money for repayments 2% u needed about 12% and if it rose to 18% you needed 18% more however at 6% if it goes up 1% you have to find 17%, if it goes up 2% you need 34% if it goes up 3% you have to find 50% more...how many families could afford that??

IMO we will see a softening over 1-3 yrs 20-25% or stagnate pricing for 10 + years as the affordability increases , in both cases not a good formula for investing afresh today...thopse who bought years ago it will be a good investment still via return on money, but imo a better entry position is not now but in years to come...