Australia housing bubble

Originally Posted by xax2

So, no one should own an investment property????? Where are all the people that want to (or have to) rent going to live?....the government is going to be able to supply house for all of them.

There aren't many people that "want" to rent. If price/income ratio was as it used to be, most people would be able to buy a house.

Steady growth is what we need.

Why is steady growth what we need? What good is that without an equally steady rise in incomes, which we haven't had? You just end up in the exact predicament that we are in. If mums and dads want to get ahead in life, they should find a business that doesn't include the housing industry and riding off the backs of the next generations who can't afford the inflated prices that they've caused.

Kids have to jump from job to job, chasing pay increase after pay increase until they might one day be able to afford a horse. Then they get the "old folks" criticising them for their lack of loyalty towards a business that's willing to take a chance on them. Sounds like they can't win, hey?

Originally Posted by b0son

If house prices go into free-fall, do you think banks will lend money at low rates for a depreciating asset? Do you think people with a rapidly worsening equity position will be inclined to spend money freely in the economy? Do you think the young people licking their lips at the prospect of lower house prices will even have jobs if the economy grinds to a halt?

I'm not saying it wouldn't have a disastrous effect, but I actually think this country needs the *** to fall out of the economy so that we can start again.