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Good point, but if a person on an average wage buys an average property which has an average price, as long as the property is 5 times his salary it's affordable and if the same property during the next 10 years it gets a bit out of reach for the next average bloke and it's price becomes 7 times...

Keith With the use of technology this trend is returning so tomorrow we could doing the same job we are doing in the city from a cottage out in the bush

But wages won't be increasing at the inflation rate, yes now companies can use the GFC excuse not to pass large pay increases to their employees but they can't do it for long. Last year I got a 6% increase and the year before it was higher, so payrises will vary but are mostly above CPI

Allan Assuming that the Granville house would have doubled in 10 years then it's value should have been $260K in 2006 and $318K today. Therefore using this theory the guy paid $37K too much. Not a big deal really, the good thing with Sydney though is that we've essentially run out of land...

Nice 1 Michael, :) now lets hope that the fed government actually does something with all that money which is about to start coming our way.... Also, let's all buy BHP & RIO shares otherwise it'll be going to the multinationals and/or back to China....

I don't know about your area but I feel that rents in many areas are high in comparison to earning When we have a mortgage we pay what the bank is charging us. We pay the 7, & 8% because we have no choice. However, the situation with tenants is different. People will pay a higher rent but...

Such a low yield worries me. Right now I wouldn't touch such a property because rents have probably maxed out for now, and property prices have already moved so we could be entering a period of low rental increases and low capital gains at a time when interest rates are on the increase.

Alan I hope you're right but the way things are going I'll be surpriced if prices double in the next 10 years. I say this because with such a low inflation environment we'll only be getting minimum pay increases so who will be able to afford to buy property at double the current prices...