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I would've killed myself if I didn't save up $70k after my grad year... I guess it stands to reason I'm still alive hohoho. Looks like this place is heading from a glass ceiling to a concrete ceiling again, people on the other side (the bottom one in case you didn't know which one I'm...

Here's a quick calc. House: 350k Deposit: 20% Loan: 280k Interest @ 8%: $430pw Repayment @ 30 yrs: $179pw Total P&I: $609pw Gross Avg Adult Salary: 68k Net Avg Adult Salary: $52k or $1000pw Conclusion If you buy a $350k house on 80% gearing, you'll have $400 left to spend each...

I meant, someone on an intern's annualised salary can.

Haha really? There're people who can probably afford that on an intern salary lol... That's not to detract from starter's achievement though - well done!!!

Hmm there seems to be a significant philosophical confusion here. Negative gearing doesn't really inflate property prices to the point they're beyond 'fundamentals'. Negative gearing is a fundamental, just as capital gains tax, stamp duty, GST, income tax all are fundamentals of life. To the...

Lol I haven't had 30 years experience, but even I knew about the boom and bust in that period. You sure you didn't mean 30 days of experience valuing 'things'?

When the banks lend they do it on the basis of whether you can pay interest and principal, and they usually work off 8.5% now.

Ah... that's why there's a structural shift happenning. 10 years ago, a $200k gets you a 3-bedder and you can pay it off in maybe 7 years. Now $200k gets you a studio and you will have to pay it off in 10 years. In 20 years, $200k is only going to get you hmm... a car spot, and it'll take you 20...

As someone else said, that's not true. I just went partying around China and Hong Kong for 5 weeks - and have some inner city residential investments nearly paid off and yes, with no help from any other people. I'm probably younger than you too... A smart 25 year old would in fact be...

Well said, coming from a 25 year old.

Definitely overpriced. An icypole is more expensive here. $1.50 is ~0.15% of the average Australian weekly disposable income. In Hong Kong, it's $3.00 which is ~0.1% of avg weekly disposable income. Should be due for a 33% correction.

Not fall by enough that you can afford it anyway. Are you really going to afford the same house if there was a 15% fall and interest rates were 10% and banks required a 20% deposit? Lol...

Gee whinge more. I want this, I want that. Can't get it? Well I hope what I can't get crashes you suckerssss... 1. You want a PPOR, not an investment? Well too bad, you can only get investment 2. You can't afford a dog or vege patch. Put up with it. I want a submarine and a tank. 3. Cry...

Yep all that. You answered it perfectly. Not sure why you asked me if you knew what I meant...

Ah absolutely. I wonder what Nelson Mandela was thinking when he was locked away. Or what Deng Xiaoping was thinking when he was purged from the Politburo. Or what Howard thought about his chances in 1987... oh we all know that one, some crap about Lazarus. And Gillard, hey how come she hasn't...

That's what I meant, the downsizing is in terms of size, not prices. An inner city apartment is still fairly affordable. What you wanted to know was whether current land prices are sustainable. What I'm getting more towards is that it probably is if the structural shift occurs and the land...

Ah yes .toe, exactly. There'll be a structural shift at some point where people downsize. People this generation are too greedy and want to live in the same sized 400sqm+ houses their parents a generation ago lived in. Based on studies I've read, Australians live in the biggest McMansions in...

Hmmm what whatever123 described is the way of life - very suited to Canada and Australia. I think the other day someone from Singapore described it to me as the Way of Mediocrity and Social Welfare.

Well it is harder, but you just need to decide whether it's just a structural shift in the way houses will be purchased or whether it's just unsustainable. There's always timing issues and you're probably right that this is the top of a cycle. You just need to take a view on economics, but...

If you find things unaffordable now, you'll be in for a rude shock 15 years later. Have fun.