Wow, I didn't expect such a simple concept such as "prices are right when average people can buy an average house without going into debt for the rest of their lives" to be so popular.
I read the discussions but usually don't post on this forum because I do not own Australian property. I don't own it for a reason: I cannot afford it. Actually, I could afford a two-bedder but with a wife and family I would rather keep renting for the rest of my life rather than squeezing everybody into a one-bedder with the potential of seeing our lifelong savings evaporate. Not to mention the crazy strata-fees that two-bedders attract these days.
But I am digressing. I was living in the US during the crash and people would buy a shed in the middle of suburbia for a crazily inflated price with the idea "it will double in 10 years". Well it didn't. It was frenzy and nobody was aware of it. In fact I remember having the exact same arguments of this forum with a taxi driver in New York in 2005. He was saying: "A crash will never happen IN THIS COUNTRY, housing prices always go up or, at the most, they go steady for a few years but down... NEVER"
Unfortunately, I am too scarred from that experience, from seeing friends loose their life savings and seeing their family home getting repossessed.
I wish you all well but until the drop, I am a renter and happy to be one!
