the great oz housing scam exposed, page-8

octain,

what you need to do is get out a spreadsheet and start compounding average weekly earnings and average house prices and then go to a mortgage calculator on some web site and see if salaries are going to be enough to service the debt on what all the property bulls think future house prices are going to be

sure negative gearing helps house prices being bid up by investors, so house prices can and in my opinion will be bid up further than they are today

But ultimately what is important for house prices to rise further is the affordability of a house to first home buyers not using negative gearing.

I think you find in some point in the next couple of years the huge % gains people need to sustain property investment(holding, buying and selling costs are huge) wont be there unless Australians start earning a lot more than they are now and/or some new incentive to buy houses comes along

then you have the baby boomers retiring on top of that