Redmond, glad you are back to provide your informative opinions...

Redmond, glad you are back to provide your informative opinions and views on property.

It seems that many of your points gloss over you seem to justify your arguement based on previous posts by you many of which were refuted.

The US, UK and Aust are not the same. The US mortgage laws are totally different. People can walk away from loans. Hence negative euity is something that does not need to be worn by an US home owners.

however, in australia, negative equity stays with you. hence the reluctance to sell even when their is negative equity.

Average loans in australia are some $300k and $215k for FHB. Accordingly, australian home owners are not over indebt. based on the current interest rate between 5-6% this represent a cost of some 300-360 a week, and way cheaper than rent. Hence the reduced incentive for people to sell. Based on the average mortgages just means that the buyers have significant deposits from other sources. hence the wealth factor that oyur simply chart does not reflect

I find it interesting that you quote that it is taking some 12-18 months for houses to sell. I thought the averages where much less. But I know you certianly provide the isolated instance in your street that justifies your view.

As to the massive homelessness arguement to justify that there is no shortage is another furpy. The shortage is based on what the average number of people in a house divided by the number of people. As people have lost confidence, they have either moved in with mum and dad, sharing with others. What you will find is that the average number per houses has increased in the recent years. All this means is that as confidence returns, people will start looking.

But again you will find a one line arguement to justify your views that property is over priced.

redmond, i think you need to really assess your chart to see if it really valid as it does not take into account a lot of other factors in determine the value of a house.

And I think you need to face it that the 30% that dont own a home will never own a home. It is the 70% and their children that will becoem future buyers, not the 30% you seem to aim your idealogical views to wards helping