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no it means that wages steadily kept up with credit growth and steadily kept up with inflation and steadily kept up with house prices in an "all in one" scenario - well, comparitive to post WW2, anyway. the graph clealry highlights the 1897 crash, 1907 crash, WW1, 1920s boom, 1929 crash, WW2...

that's great. but that doesn't pertain to the initial investor's concerns, especially considering it's a first-time deal and we all know the mistakes we make early on.

i only bring it up because obviously growth in house prices follows wage growth as much as it does available credit. so if wages hold and credit does not, then any price fall may be only half of what it appears to be projected at - to simplify the calculation. but yes, i too feel that...

does that graph take into effect wage growth as well? because that graph looks a lot like wage growth above CPI as well....

If you want to buy a property, it would be wise to save 20% deposit and avoid LMI. Gearing anything 20:1 is silly, including property. If you want another property after doing satisfactory research, then buy it. If you don't want one after your research, then don't buy it. It's a pretty simple...