I'm 23, looking to buy in Sydney and have a few hundred saved but very nervous about buying at current prices as to these reasons -
- Current personal debt to income ratio at all time high
- Record house prices
- lowering commodity prices
- slowing china (big time)
- wages very high
- un-employment rising
Bottom line is most people are living beyond there means, any economic down turn or interest rate rise will have people scrambling for the door creating an opportune buying time, imo its not a matter of if, but when? could be years? the RBA just keeps lowering interest rates but one day the penny will drop and i don't think its to far off.
Seen reports how china has fooled the world with regards to its government debt and if they collapse it will be an absolute bloodbath here in Australia especially Sydney with the exorbitant prices for everything.
All time high house prices + rising un employment + all time high debt + slowing china = disaster (imo anyway!)
This is pretty much the crux of what happened in the USA coupled with alot of greed.
