Yes It has been said numerous times recently perth is around...

Yes It has been said numerous times recently perth is around 30%+ over valued...Perth is getting close if not close to the most expensive property in Australia based on wages and rents.
Australia is considered to be the most overpriced property in the world according to last years global real estate valuations, it was said to be close to 50% overvalued meaning a 300K house should be selling for 200k based on rents and wages.
One must not forget that property can become undervalued like companies if we are in a bear market so falls from 300k could go well under 200k valuation.
So Joe bloggs gets a mortgage in Perth with his wife, he works as a tradesman and makes 50k a year.
He buys a house for 300k and puts down a 20k deposit.
It costs him close to 20k to buy their house.
The economy slows, interest rates rise, suddenly Joe has no job and has to sell his property as he cant afford the repayments.
Problem is the banks wont lend money as easily as they did as the economy has slowed, unemployment picks up as interest rates rise.
Joe has no choice, he has to sell his property in a market where there are no buyers, not only cause people cant afford what he';s asking but they all have 2 investmnet properties and cant afford to pay their own repayments.
Joe finally sells his property for 200k, real estate agent and costs add up to another 10k.
So Joe has dropped 30k on buying and selling expenses and another 100k on selling his property, he's lost his 20 k deposit and ended up with a loan for 110k and no property.

It will happen always has and always will...not a matter of if but when.
Those who own property in perth will defend it to their death, like a fool in a bad stock thats crashing and try and justify why it will be ok.

You should know better greedy people