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Then stop being a victim and keep renting and be happy.

While some of you fine folk here invest on some semblence of supporting fundamentals, I know of many more that invest by effectively just throwing a dart at the nearest barely-affordable property and bank on the 'property always goes up gangbusters' mantra to make it work. It will be interesting...

Actually, you did earlier in this thread: Even your own figures show that if growth is greater than wage rises, then as time goes by more of your wage goes to servicing the loan regardless of what you can do with the money left over. That's the point I was trying to make in the first place...

Far out Beebop. I think property is somewhat overpriced and is due for a correction, perhaps a long drawn out one at that, but you seem to think the entire property invesment world is about to end. Did a bear steal all your honey?

What you suggest about multiple bands of salarys is possible I guess, which could mean those in the buying zone do earn higher than the median. But what I don't believe is that any band, other than perhaps the top tier, would have wage growth greater than any another. As such, the percentage...

If one of those functions (growth) consistently exceeds the other (income) then eventually the former will dwarf the latter. I just threw together a quick spreadsheet that demonstrates this phenomenom, a screenshot of which is provided below. The loan (which is proportional to growth given...

Nice explanation, albeit somewhat condescending based on your much higher post count than me I guess, but regardless of whether you use discretional or absolute income, at some stage Mr Compounding Effect is going to consume your entire household income feeding the mortgage monster. Where does...

Well you missed my point. Of course the price has gone up, it's just that it has gone up faster than the wages that feed its mortgage foundations. As a mathematical certainty, this cannot continue indefinitely and someday soon that gravy train is going to run out of puff (or should I say oil :D)...

Oil has gone up less than property relative to incomes over the last half century, yet oil is actually running out whereas land in Australia is still quite plentiful. At least you can do something productive with oil (well you can with land too, but not in the context of this discussion about...

I'm with Beebop. Housing has become much more expensive relative to income in Canberra versus when I bought in in the mid-90s. A similar mortgage load (as in % of salary) nowadays gets you far less house or location than it did. As much as people pat themselves on the back for all the CGs...

Good one! I've been wondering where all these properties that have recently started flooding the market have come from too. There must have been some pent up supply :p