Quote:
Originally Posted by andyc
Marc, that's all easy to say, but personal credit card debt doesn't explain a relative doubling of house price. Easier mortgages might explain some of it, but that's spectacularly unsustainable - see the UK and USA around 2007-08. You can't 'start small' today, unless you want to start 50% smaller than your parents generation of 25 years ago. You'll probably also be further from your work, so spending more income on travel. Sensible rules such as borrowing no more than 3-4x your salary don't buy you what it did in those days. Part of the reason is that you are more than likely competing against investors rather than other homeowners, as the data shows.
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I realise this but you still have a choice. Buying a property is only if you can afford it otherwise you rent. Plenty of people do that. Nothing's wrong with that at all. And yes you do need a bloody good paying job to buy a house these days. You can start small. Buy away from the CBD, or a small unit to get in the game. Own it, then move on. Small steps, small risks, small earning but it all adds up. There's enough land and room in Oz for everybody. Housing pricing will go down and become more affordable again. Interest rates, well, they're as good as it gets right now and people who stretched themselves thin are going to hit it hard.